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Taxation Laws (Amendment) Bill, 2026 passed in Lok Sabha
Taxation Laws (Amendment) Bill, 2026 passed in Lok Sabha amidst opposition uproar; major relief for foreign investment and electronics sectors
The ‘Taxation and Other Laws (Amendment) Bill, 2026’ was passed in the Lok Sabha on Thursday without detailed discussion, amidst loud protests and slogan-shouting by the opposition. Finance Minister Nirmala Sitharaman introduced the bill. A detailed discussion could not take place because the opposition demanded statements from the Home Minister on various issues. The House passed the bill by a voice vote, setting aside amendments proposed by Members of Parliament and motions to disapprove the ordinance.
The primary objective of this bill is to boost Foreign Direct Investment (FDI) in the country, simplify regulations for foreign fund managers, and provide significant tax exemptions until 2040-41 to companies manufacturing electronics such as mobile phones and laptops. Concessions have also been granted regarding various regulations concerning data centers and digital payments.
Key changes in the bill
Relief for foreign fund managers
Regulations for foreign investors and fund managers entering India have been significantly simplified. The process of taxation on funds invested in India will now be much easier than before.
Tax exemption for the electronics sector until 2040
The bill includes provisions for tax exemptions until 2040-41 for foreign companies manufacturing digital devices such as mobile phones, laptops, tablets, computers, and servers. Foreign companies supplying components and machinery to Indian factories, or storing goods in warehouses, will be eligible for tax concessions for up to 15 years. This is likely to make electronic goods cheaper in the country.
Facilitation for data center and cloud companies
Foreign cloud companies utilizing Indian data centers will no longer need to seek repeated permissions. Additionally, data centers can now be operated on a lease basis. Digital Payment Regulations
Provisions regarding the use of RuPay cards and BHIM-UPI for large merchants with a turnover exceeding ?50 crore have been made more practical through amendments to the Income Tax Act and the Payment Systems Act.
The government states that these measures will bring greater transparency to India's economic policies and facilitate business operations for foreign companies in the country. This is considered a significant step towards transforming India into a global manufacturing hub. These changes are expected to boost foreign investment and provide a major impetus to the manufacturing sector.
Taxation Laws (Amendment) Bill, 2026 passed in Lok Sabha amidst opposition uproar; major relief for foreign investment and electronics sectors
The ‘Taxation and Other Laws (Amendment) Bill, 2026’ was passed in the Lok Sabha on Thursday without detailed discussion, amidst loud protests and slogan-shouting by the opposition. Finance Minister Nirmala Sitharaman introduced the bill. A detailed discussion could not take place because the opposition demanded statements from the Home Minister on various issues. The House passed the bill by a voice vote, setting aside amendments proposed by Members of Parliament and motions to disapprove the ordinance.
The primary objective of this bill is to boost Foreign Direct Investment (FDI) in the country, simplify regulations for foreign fund managers, and provide significant tax exemptions until 2040-41 to companies manufacturing electronics such as mobile phones and laptops. Concessions have also been granted regarding various regulations concerning data centers and digital payments.
Key changes in the bill
Relief for foreign fund managers
Regulations for foreign investors and fund managers entering India have been significantly simplified. The process of taxation on funds invested in India will now be much easier than before.
Tax exemption for the electronics sector until 2040
The bill includes provisions for tax exemptions until 2040-41 for foreign companies manufacturing digital devices such as mobile phones, laptops, tablets, computers, and servers. Foreign companies supplying components and machinery to Indian factories, or storing goods in warehouses, will be eligible for tax concessions for up to 15 years. This is likely to make electronic goods cheaper in the country.
Facilitation for data center and cloud companies
Foreign cloud companies utilizing Indian data centers will no longer need to seek repeated permissions. Additionally, data centers can now be operated on a lease basis. Digital Payment Regulations
Provisions regarding the use of RuPay cards and BHIM-UPI for large merchants with a turnover exceeding ?50 crore have been made more practical through amendments to the Income Tax Act and the Payment Systems Act.
The government states that these measures will bring greater transparency to India's economic policies and facilitate business operations for foreign companies in the country. This is considered a significant step towards transforming India into a global manufacturing hub. These changes are expected to boost foreign investment and provide a major impetus to the manufacturing sector.
The ‘Taxation and Other Laws (Amendment) Bill, 2026’ was passed in the Lok Sabha on Thursday without detailed discussion, amidst loud protests and slogan-shouting by the opposition. Finance Minister Nirmala Sitharaman introduced the bill. A detailed discussion could not take place because the opposition demanded statements from the Home Minister on various issues. The House passed the bill by a voice vote, setting aside amendments proposed by Members of Parliament and motions to disapprove the ordinance.
The primary objective of this bill is to boost Foreign Direct Investment (FDI) in the country, simplify regulations for foreign fund managers, and provide significant tax exemptions until 2040-41 to companies manufacturing electronics such as mobile phones and laptops. Concessions have also been granted regarding various regulations concerning data centers and digital payments.
Key changes in the bill
Relief for foreign fund managers
Regulations for foreign investors and fund managers entering India have been significantly simplified. The process of taxation on funds invested in India will now be much easier than before.
Tax exemption for the electronics sector until 2040
The bill includes provisions for tax exemptions until 2040-41 for foreign companies manufacturing digital devices such as mobile phones, laptops, tablets, computers, and servers. Foreign companies supplying components and machinery to Indian factories, or storing goods in warehouses, will be eligible for tax concessions for up to 15 years. This is likely to make electronic goods cheaper in the country.
Facilitation for data center and cloud companies
Foreign cloud companies utilizing Indian data centers will no longer need to seek repeated permissions. Additionally, data centers can now be operated on a lease basis. Digital Payment Regulations
Provisions regarding the use of RuPay cards and BHIM-UPI for large merchants with a turnover exceeding ?50 crore have been made more practical through amendments to the Income Tax Act and the Payment Systems Act.
The government states that these measures will bring greater transparency to India's economic policies and facilitate business operations for foreign companies in the country. This is considered a significant step towards transforming India into a global manufacturing hub. These changes are expected to boost foreign investment and provide a major impetus to the manufacturing sector.
