New Delhi: Union finance minister Nirmala Sitharaman introduced the Taxation and Other Laws Amendment Bill, 2026. The move is aimed at making India a predictable destination for global capital, strengthen domestic manufacturing and enhance ease of compliance.
The bill seeks to amend three laws: the Payment and Settlement Systems Act, 2007, the Income-tax Act, 2025, and the Finance Act, 2026. The bill also seeks to replace the Income-tax (Amendment) Ordinance, 2026, according to reports.
“In recent months, on account of evolving geopolitical developments and related disruptions in international trade and supply chains, the global economic landscape has undergone considerable uncertainty. Hence, a need has arisen to undertake certain immediate taxation measures with a view to mitigate the impact of external economic shocks, ensure stability in the domestic economy, and support key sectors affected by the prevailing global conditions…,” Sitharaman had said.
Promulgated by the President of India, the Ordinance gave tax exemptions to eligible foreign investors on government securities (G-Secs). The Ordinance has remained effective from April 1. The enactment of the bill will repeal the ordinance, it will safeguard actions already taken under the provisions of the ordinance.
Tax rules are being simplified so that foreign investment funds are not taxed merely for making India as their base, an official told HT.