Now Reading: Lok Sabha Passes Tax Bill With Electronics and Fund Incentives
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Lok Sabha Passes Tax Bill With Electronics and Fund Incentives
The Lok Sabha passed the Taxation and Other Laws (Amendment) Bill, 2026, on Thursday, amending the Income-tax Act, 2025, the Finance Act, 2026 and the Payment and Settlement Systems Act, 2007. It…
The Story in Brief
The Lok Sabha passed the Taxation and Other Laws (Amendment) Bill, 2026, on Thursday, amending the Income-tax Act, 2025, the Finance Act, 2026 and the Payment and Settlement Systems Act, 2007. It replaces an income-tax ordinance and seeks to improve tax certainty, attract foreign investment and support domestic manufacturing.
The Bill eases compliance for eligible offshore funds, extends tax benefits for electronics suppliers until 2041 and grants a 15-year exemption to foreign companies storing components in bonded warehouses. It also relaxes rules for foreign cloud firms using Indian data centres and expands exemptions in the diamond trade. The Economic Times reports that the Bill lets the Centre notify digital payment modes on which providers cannot charge fees. Mint says the change could eventually allow merchant fees on large UPI transactions.
The Indian Opinion
The loudest claims will likely present the Bill either as a foreign-investment cure-all or as a hidden UPI fee measure. Neither follows from the text described so far. Compliance relief may help funds and electronics firms, but its value depends on reporting safeguards and actual investment. The payment provision also needs clear notification before its effect is known. The practical test is whether new fund operations and manufacturing capacity rise by 2041.
Sources (3): economictimes.indiatimes.com, thehindubusinessline.com, livemint.com
This story was synthesised by AI from the 3 sources linked above.
Updated: this story now draws on 3 sources.
