The Taxation and Other Laws Amendment Bill 2026 has been passed by Parliament, with the objective of mitigating economic shocks, strengthening India's manufacturing ecosystem, and attracting investment.
Parliament passed the Taxation and Other Laws Amendment Bill 2026 today. The bill seeks to amend the Payment and Settlement Systems Act, 2007, the Income-tax Act, 2025, and the Finance Act, 2026. Union Finance Minister Nirmala Sitharaman moved the bill in Lok Sabha, which had already passed it. The Bill replaces the Income-tax (Amendment) Ordinance, 2026, promulgated on 5th June 2026. The objective of the Bill is to strengthen India’s manufacturing ecosystem, attract further investment, generate employment, and promote manufacturing activities. The Bill exempts foreign institutional investors and the Bank for International Settlements from paying income tax on interest earned on investments in government securities. This exemption applies to income arising on or after 1st April 2026. The Bill further amends the Income-tax Act to exempt income earned by certain foreign companies from the sale of rough diamonds in a notified special zone. Union Finance Minister Nirmala Sitharaman clarified that the Bill does not impose any tax or transaction charge on UPI users and assures no MDR charges will be paid by small merchants and consumers on UPI transactions.
Source:
Akashvani News
