The Taxation and Other Laws (Amendment) Bill , 2026 was a bill introduced in the Indian Parliament aimed at amending the Income-tax Act, 2025 and several other tax-related laws. The bill proposed modifications to tax provisions concerning foreign surrogacy, business trusts, and relevant data compliance in India. Upon being passed by both the Lok Sabha and the Rajya Sabha, the bill received the President's assent and became an Act. Key Provisions The Bill amends the Income Tax Act, 2025, the Finance Act, 2026, and the Payment and Settlement Systems Act, 2007. Its purpose was to modify tax provisions for certain foreign investors and other eligible entities, promote electronics manufacturing, and amend the legal framework for digital payments.
The Bill proposed tax exemptions for eligible foreign investors on income from certain government securities, changes to tax provisions related to Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts(InvITs), and tax incentives for specified electronics manufacturing activities. Additionally, amendments to the Payment and Settlement Systems Act provided the legal basis for the Merchant Discount Rate (MDR) regime on digital payments. Legislative History The Taxation and Other Laws (Amendment) Bill, 2026 was introduced in the Lok Sabha by Finance Minister Nirmala Sitharaman on August 4, 2026. The Bill was passed by the Lok Sabha on August 6, 2026. It was then sent to the Rajya Sabha for consideration and passage. References