Amendment of section 440

In force Act 4 of 2026 As on 11 Oct 2026

Act 4 of 2026 Ministry Finance Cited by 1 provision

Section 99 of the Finance Act, 2026 deals with amendment of section 440. Amendment of section 440. 99. In section 440 of the Income-tax Act,— (a) | for the marginal heading, the following marginal heading shall be substituted, namely:— "Waiver of penalty and immunity from prosecution.";

Amendment of section 440.
99. In section 440 of the Income-tax Act,—
(a) for the marginal heading, the following marginal heading shall be substituted, namely:—
"Waiver of penalty and immunity from prosecution.";
(b) for sub-sections (1) to (4), the following sub-sections shall be substituted, namely:—
"(1) An assessee may make an application to the Assessing Officer to grant waiver of penalty levied under section 439 and immunity from initiation of proceedings under section 478 or 479 on fulfilment of the following conditions:—
(a) the tax and interest payable as per the order of assessment under section 270(10) or reassessment under section 279, has been paid within the period specified in the notice of demand;
(b) where penalty has been levied under the circumstances referred to in section 439(11)(a) to (f), additional income-tax amounting to 100% of the amount of tax payable on under-reported income has been paid within the period specified in the notice of demand, in lieu of such penalty;
(c) where penalty has been levied under the circumstances referred to in section 439(11)(g), additional income-tax amounting to 120% of the amount of tax payable on under-reported income has been paid within the period specified in the notice of demand, in lieu of such penalty; and
(d) no appeal has been filed against the order of assessment or reassessment and levy of penalty referred to in clauses (a), (b) and (c).
(2) An application referred in sub-section (1) shall be made within one month from the end of the month in which the order referred to in the said sub-section is received by the assessee, in such form and verified in such manner, as may be prescribed.
(3) The Assessing Officer shall, on fulfilment of the conditions as specified in sub-section (1), and after the expiry of the period of filing appeal as specified in section 358(3)(a), grant waiver of penalty under section 439 and immunity from initiation of proceedings under section 478 or 479.
(4) No waiver or immunity under sub-section (3) shall be granted if any proceeding has been initiated under Chapter XXII.".
Section 99, The Finance Act, 2026 (Act 4 of 2026).

Cross-references

Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.

Referred to by 1

s. 45 Amendment of section 99

Questions about Section 99

What does Section 99 of the Finance Act deal with?

Section 99 of the Finance Act is headed "Amendment of section 440". Amendment of section 440. 99. In section 440 of the Income-tax Act,— (a) | for the marginal heading, the following marginal heading shall be substituted, namely:— "Waiver of penalty and immunity from prosecution.";

How do I find court cases under Section 99 of the Finance Act?

In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Finance Act 2026 99, section 99 Finance Act 2026, section 99 of the Finance Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome.

What should I read with Section 99 of the Finance Act, and has it changed?

1 other provision in this corpus refers back to it.

When was the Finance Act enacted?

Finance Act was enacted in 2026 as Act 4 of 2026. India Code records no commencement date for it. It is in force as at the date shown on this page.

Other sections of this Act

First Schedule. -11686 words
3. Income-tax under Act 30 of 20258033 words
Fourth Schedule. -4078 words
2. Income-tax under Act 43 of 19612736 words
26. Substitution of new sections for sections 276B, 276BB, 276C, 276CC, 276CCC and 276D1437 words
Fifth Schedule. -1363 words

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(a)		for the marginal heading, the following marginal heading shall be substituted, namely:—
		"Waiver of penalty and immunity from prosecution.";
(b)		for sub-sections (1) to (4), the following sub-sections shall be substituted, namely:—
		"(1) An assessee may make an application to the Assessing Officer to grant waiver of penalty levied under section 439 and immunity from initiation of proceedings under section 478 or 479 on fulfilment of the following conditions:—

(a)		the tax and interest payable as per the order of assessment under section 270(10) or reassessment under section 279, has been paid within the period specified in the notice of demand;
(b)		where penalty has been levied under the circumstances referred to in section 439(11)(a) to (f), additional income-tax amounting to 100% of the amount of tax payable on under-reported income has been paid within the period specified in the notice of demand, in lieu of such penalty;
(c)		where penalty has been levied under the circumstances referred to in section 439(11)(g), additional income-tax amounting to 120% of the amount of tax payable on under-reported income has been paid within the period specified in the notice of demand, in lieu of such penalty; and
(d)		no appeal has been filed against the order of assessment or reassessment and levy of penalty referred to in clauses (a), (b) and (c).

		(2) An application referred in sub-section (1) shall be made within one month from the end of the month in which the order referred to in the said sub-section is received by the assessee, in such form and verified in such manner, as may be prescribed.
		(3) The Assessing Officer shall, on fulfilment of the conditions as specified in sub-section (1), and after the expiry of the period of filing appeal as specified in section 358(3)(a), grant waiver of penalty under section 439 and immunity from initiation of proceedings under section 478 or 479.
		(4) No waiver or immunity under sub-section (3) shall be granted if any proceeding has been initiated under Chapter XXII.".