# The Finance Act, 2026, Section 86: Amendment of section 395

- Act: The Finance Act, 2026 (Act 4 of 2026)
- Ministry: Ministry of Finance
- Source URL: https://indiacode.ecourtsindia.com/finance-act-2026/section/86/

## Text

Amendment of section 395. 86. In section 395 of the Income-tax Act,— (a) | in sub-section (1), for clause (c), the following clause shall be substituted, namely:— "(c) when a certificate is issued under clause (b) or sub-section (6), as the case may be, the person responsible for paying the income or sum shall deduct the tax at the rate specified in such certificate, or deduct no income-tax, as the case may be, till its validity."; (b) | after sub-section (5), the following sub-section shall be inserted, namely:— "(6) The application referred to in sub-section (1)(a) may also be filed before the prescribed income-tax authority, subject to such conditions as may be prescribed, and such authority on electronic verification of the contents of the application, may— (a) | either issue a certificate for deduction of income-tax at lower rate or no deduction of income-tax; or (b) | reject such application on account of non-fulfilment of the prescribed conditions or on account of the application being incomplete.".

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