Parliament Passes Taxation Laws Amendment Bill, 2026

1. Executive Summary : Parliament has passed the Taxation and Other Laws Amendment Bill, 2026, introduced by Finance Minister Nirmala Sitharaman. Replacing the June 2026 Ordinance, it aims to enhance Ease of Doing Business and economic stability in India.

2. Amended Legislations : Payment and Settlement Systems Act, 2007

Income-tax Act, 2025

Finance Act, 2026

3. Key Provisions & Reforms : Tax Relief for FIIs: FIIs and BIS are exempt from income tax on interest from Government Securities from April 1, 2026 (previously taxed at 20%).

UPI Protection: No Merchant Discount Rate (MDR) or transaction charges for small merchants and UPI consumers.

Trade & AI Infrastructure: Tax incentives for foreign companies selling rough diamonds in special zones and those procuring Indian data center services.

4. Strategic Objectives Boost manufacturing, FDI, and employment generation.

Accelerate the vision of a Self-Reliant India (Aatmanirbhar Bharat).

Quick Summary:

Bill Title: Taxation & Other Laws Amendment Bill, 2026 | Ministry: Finance | Focus: FII Tax Relief, Diamond Trade, Free UPI, Data Centers.