Section 530
Section 530: Act to have effect pending legislative provision for charge of tax
Section 530 is a bridging provision: if, by 1st April of a tax year, Parliament has not yet enacted the Central Act that charges income-tax for that year, the Income-tax Act, 2025 continues to operate anyway - using whichever is more favourable to the assessee, the provision that applied the preceding tax year, or the provision proposed in the Bill then pending before Parliament.
This explanation is AI-assisted and pending review by our CA/CS team. It is general information, not professional advice - always cross-check against the bare law text above or talk to our tax team for guidance specific to your situation.
What Section 530 says
"If on the 1st April in any tax year, provision has not yet been made by a Central Act for the charging of income-tax for that tax year, this Act shall nevertheless have effect until such provision is so made, as if the provision in force in the preceding tax year or the provision proposed in the Bill then before Parliament, whichever is more favourable to the assessee, were actually in force."
Frequently asked questions
What happens if the annual Finance Act charging income-tax hasn't been passed by 1st April?
Section 530 keeps the Income-tax Act, 2025 operating anyway, applying whichever is more favourable to the assessee - the preceding tax year's provision or the provision proposed in the pending Bill.
Which rate applies during the gap - the old rate or the proposed rate?
Whichever one is more favourable to the assessee, under Section 530.
Want this applied to your actual filing, not just explained?
Talk to our tax team about this sectionLast updated 9 September 2026