Budget 2026: Income Tax Assessments Not to be Invalidated for DIN Errors, New Section Added [Read Finance Bill 2026]

The Union Budget for the Financial Year 2026–27 was presented by Finance MinisterNirmala Sitharaman in the Lok Sabha today (Sunday, 1 February 2026).

The Finance Bill, 2026 proposes to insert a new Section 292BA in the Income-tax Act, 1961 to clarify that income tax assessments will not be invalidated due to errors related to the Document Identification Number (DIN).

“After section 292B of the Income-tax Act, the following section shall be inserted, namely:––

“292BA. Notwithstanding anything contained in any judgment, order or decree of any court, for the removal of doubts, it is hereby clarified for the purposes of section 292B that no assessment under any of the provisions of this Act shall be invalid or shall be deemed to have been invalid on the ground of any mistake, defect or omission in respect of quoting of a computer generated Document Identification Number, if the assessment order is referenced by such number in any manner.”.

Under the proposed provision, no assessment made under any provision of the Income-tax Act shall be considered invalid merely on the ground of any mistake, defect or omission in quoting a computer-generated DIN, provided the assessment order is referenced by such number in any manner.

The amendment begins with a non-obstante clause, stating that it will apply notwithstanding any judgment, order or decree of any court. The government said the provision is being introduced for the removal of doubts, indicating its intent to address litigation arising from technical challenges to assessment orders.

Section292B of the Income-tax Act already provides that returns, notices and proceedings should not be invalidated due to minor procedural defects if they are otherwise in conformity with the law. The newly proposed Section 292BA specifically clarifies the position in relation to DIN-related errors in assessment orders.

The move is aimed at reducing disputes where assessments are challenged solely on procedural grounds, even when the substance of the assessment remains valid.

The insertion of Section 292BA forms part of the broader direct tax reforms in Budget 2026, which focus on simplifying tax administration, reducing litigation and providing greater certainty for taxpayers and tax authorities.

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