Now Reading: Lok Sabha passes tax Bill without discussion, easing rules for foreign capital
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Lok Sabha passes tax Bill without discussion, easing rules for foreign capital
Lok Sabha passes tax Bill without discussion, easing rules for foreign capital
The Lok Sabha passed the Taxation and Other Laws (Amendment) Bill, 2026, without discussion on Thursday, The Hindu BusinessLine reports. It amends the Payment and Settlement Systems Act, 2007, the Income Tax…
The Story in Brief
The Lok Sabha passed the Taxation and Other Laws (Amendment) Bill, 2026, without discussion on Thursday, The Hindu BusinessLine reports. It amends the Payment and Settlement Systems Act, 2007, the Income Tax Act, 2025, and the Finance Act, 2026. The Bill also repeals a June ordinance granting tax relief to foreign investors.
The measures extend a tax exemption for foreign companies supplying equipment to Indian electronics factories until 2040-41. They ease approval rules for foreign cloud companies using Indian data centres, permit leased facilities, and reduce conditions for eligible investment funds managed from India from 13 to five. The Bill does not impose Merchant Discount Rate charges on UPI now, but removes the statutory restriction, allowing future government action.
The Indian Opinion
Claims that the Bill immediately brings back UPI charges are overstated. So are sweeping claims that every foreign investor gets an automatic tax holiday. Eligibility, notifications and compliance rules will decide the effect. The sharper concern is process: Parliament passed a wide-ranging measure without debate. The useful test is whether investment and jobs follow, while the government keeps UPI costs at zero and publishes the promised rules clearly.
Sources (2): thehindubusinessline.com, thehindu.com
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
