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India's Taxation and Other Laws (Amendment) Bill 2026 targets FDI boost
The Taxation and Other Laws (Amendment) Bill, 2026 was introduced in the Lok Sabha on 4 August 2026 by Finance Minister Nirmala Sitharaman. The legislation seeks to amend the Payment and Settlement Systems Act 2007, the Income‑tax Act 2025 and the Finance Act 2026. It proposes a range of tax incentives to attract foreign direct investment, including extending the tax holiday for foreign companies supplying machinery or tools to Indian manufacturers from five to ten years, easing conditions for offshore investment funds, and granting new exemptions for data‑centre services, rough‑diamond trading and foreign‑owned electronics manufacturing. The Bill also introduces a surcharge of 10 % for domestic companies and 25 % for special‑purpose vehicles, and creates a legal basis for possible merchant charges on UPI transactions above Rs 2,000. Industry bodies such as NASSCOM have welcomed the simplifications, while the Central Board of Direct Taxes has issued FAQs to explain the proposed changes. The government says the reforms will provide tax certainty, reduce compliance burdens and strengthen India’s digital‑infrastructure ecosystem, aiming to make the country a more attractive hub for global investors and technology manufacturers.
Entities
Abheet Sachdeva · Central Board of Direct Taxes · Foreign Portfolio Investors · Foreign investment funds · India · Indian Government · Indian Ministry of Finance · International Financial Services Centre (IFSC) · Lok Sabha · NASSCOM · Nangia Global · Nirmala Sitharaman
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 10 SOURCES] The Taxation and Other Laws (Amendment) Bill, 2026 was introduced in the Lok Sabha on 4 August 2026 by Finance Minister Nirmala Sitharaman. indias.news · www.bhaskarhindi.com · hindi.news18.com · www.ibtimes.co.in · thecsrjournal.in · +4 more
- [● 10 SOURCES] The Bill amends the Payment and Settlement Systems Act 2007, the Income‑tax Act 2025 and the Finance Act 2026. taxguru.in · www.ibtimes.co.in · samacharnama.com · www.policycircle.org · indias.news · +4 more
- [● 10 SOURCES] The Bill offers a 20‑year tax holiday (up to 2047) for foreign companies that procure data‑centre services in India. indias.news · samacharnama.com · www.policycircle.org · www.bhaskarhindi.com · hindi.news18.com · +4 more
- [● 11 SOURCES] The Bill proposes to simplify tax compliance for foreign investment funds by removing eligibility conditions such as a minimum of 25 investors, a 10 % cap on any single investor, a 50 % cap for the 10 www.businesstoday.in · www.newindianexpress.com · samacharnama.com · www.policycircle.org · indias.news · +5 more
- [● 10 SOURCES] The Bill extends the tax exemption for foreign companies supplying machinery or tools to Indian manufacturers from five to ten years, up to tax year 2040‑41. samacharnama.com · indias.news · www.bhaskarhindi.com · www.policycircle.org · hindi.news18.com · +4 more
- [● 10 SOURCES] The Bill seeks to attract more foreign direct investment and strengthen India's manufacturing sector. indias.news · www.bhaskarhindi.com · hindi.news18.com · samacharnama.com · www.policycircle.org · +4 more
- [● 10 SOURCES] NASSCOM welcomed the Bill, saying it would simplify the tax exemption framework for foreign cloud service providers and data‑centre operators. www.ibtimes.co.in · samacharnama.com · www.policycircle.org · indias.news · www.bhaskarhindi.com · +4 more
- [● 10 SOURCES] The Bill introduces a surcharge of 10 % for domestic companies and 25 % for special‑purpose vehicles. taxguru.in · samacharnama.com · www.policycircle.org · indias.news · www.bhaskarhindi.com · +4 more
- [● 4 SOURCES] The Bill provides new tax exemptions for foreign companies providing data‑centre services and for rough‑diamond trading, effective until 31 March 2041. www.taxscan.in · www.newindianexpress.com · www.businesstoday.in · taxguru.in
- [○ 1 SOURCE] The Bill creates a legal basis for merchant charges on UPI transactions above Rs 2,000. pragativadi.com
- [● 4 SOURCES] The Bill relaxes eligibility conditions for offshore investment funds, removing minimum investor thresholds, 10 % cap on single investor participation and other restrictions. www.taxscan.in · www.newindianexpress.com · www.businesstoday.in · taxguru.in
- [○ 1 SOURCE] The Central Board of Direct Taxes released FAQs explaining the Bill's provisions. www.taxscan.in