Taxation and Payment & Settlement Laws Amended

Taxation and Payment & Settlement Laws Amended

Category: Polity / Economy / Banking / Taxation

• President Droupadi Murmu gave assent to:
  • Taxation and Other Laws (Amendment) Act, 2026.
  • Amendment relating to the Payment and Settlement Systems Act, 2007.
• Objectives include:
  • Attracting foreign capital.
  • Promoting domestic electronics manufacturing.
  • Facilitating use of Indian data centres by foreign cloud companies.
  • Modifying the framework governing charges on specified digital payments.
• Taxation amendment replaced the Income-tax (Amendment) Ordinance, 2026.
• Provides tax exemptions to Foreign Institutional Investors (FIIs) and the Bank for International Settlements (BIS) on:
  • Interest earned from government securities.
  • Capital gains from sale, exchange or transfer of such securities.

Key Pointers:

• PSS Act → 2007.
• Tax exemption → government securities.
• Beneficiaries mentioned → FIIs and BIS.