CHAPTER VIII • REBATES AND RELIEFS | Income-tax Act, 1961 (as amended by the Finance Act, 2026)
Case Laws & Commentary
Section 88A — Rebate in Respect of Investment in Certain New Shares or Units (Omitted)
Part A (Rebate of income-tax) — omitted by the Finance (No. 2) Act, 1996, w.r.e.f. 1-4-1994
A. STATUS
Section 88A has been OMITTED by the Finance (No. 2) Act, 1996, with retrospective effect from 1 April 1994. It is not operative for any current assessment year.
B. LEGISLATIVE HISTORY
Section 88A granted a rebate referable to investment in certain new equity shares or units of approved mutual funds/UTI, as part of the capital-market savings incentives of the early 1990s. It was short-lived and was withdrawn retrospectively from AY 1994-95 as the incentive structure for capital-market investment was rationalised.
C. REASON FOR WITHDRAWAL / SUCCESSOR REGIME
The capital-market investment incentive was redirected over time into the deduction framework of Chapter VIA (and, much later, instruments such as section 80CCG — itself since discontinued). The standalone share/unit rebate was not retained.
D. FINANCE ACT 2026 — IMPACT NOTE
The Finance Act, 2026 does not revive or amend this provision. It remains omitted/spent for AY 2026-27.
E. CASE LAW
Section 88A has had no operative life since AY 1994-95 and carries no live case-law field for current assessments. No current authority is cited here, and none is invented.
Prepared for the bharattax.co treatise. Omission status verified against the bare Act (income-tax-act-1961-as-amended-by-finance-act-2025.pdf) read with the Finance Act, 2026. Per accuracy discipline, no live case law is invented for an omitted/spent provision; the note records the legislative history, the reason for withdrawal and the successor regime.
Case Laws & Commentary
Section 88A — Rebate in Respect of Investment in Certain New Shares or Units (Omitted)
Part A (Rebate of income-tax) — omitted by the Finance (No. 2) Act, 1996, w.r.e.f. 1-4-1994
A. STATUS
Section 88A has been OMITTED by the Finance (No. 2) Act, 1996, with retrospective effect from 1 April 1994. It is not operative for any current assessment year.
B. LEGISLATIVE HISTORY
Section 88A granted a rebate referable to investment in certain new equity shares or units of approved mutual funds/UTI, as part of the capital-market savings incentives of the early 1990s. It was short-lived and was withdrawn retrospectively from AY 1994-95 as the incentive structure for capital-market investment was rationalised.
C. REASON FOR WITHDRAWAL / SUCCESSOR REGIME
The capital-market investment incentive was redirected over time into the deduction framework of Chapter VIA (and, much later, instruments such as section 80CCG — itself since discontinued). The standalone share/unit rebate was not retained.
D. FINANCE ACT 2026 — IMPACT NOTE
The Finance Act, 2026 does not revive or amend this provision. It remains omitted/spent for AY 2026-27.
E. CASE LAW
Section 88A has had no operative life since AY 1994-95 and carries no live case-law field for current assessments. No current authority is cited here, and none is invented.
Prepared for the bharattax.co treatise. Omission status verified against the bare Act (income-tax-act-1961-as-amended-by-finance-act-2025.pdf) read with the Finance Act, 2026. Per accuracy discipline, no live case law is invented for an omitted/spent provision; the note records the legislative history, the reason for withdrawal and the successor regime.