Finance Minister Nirmala Sitharaman tables taxation bill in Lok Sabha
Finance Minister Nirmala Sitharaman just introduced the Taxation and Other Laws (Amendment) Bill, 2026, in Lok Sabha.
The big idea? To boost digital payments by stopping banks and payment apps from charging extra fees on certain government-approved payment methods.
This bill also updates some existing tax laws.
Special purpose vehicles surcharge reaches 25%
There are fresh tax breaks for foreign investors on income from government securities, plus extended tax relief for electronics manufacturing (think mobile phones, laptops, and servers) until 2040-41.
The diamond sector gets a longer window for tax-free rough diamond sales till March 2041.
The bill also makes taxes simpler for investment funds and data centers, but bumps up the surcharge on Special Purpose Vehicles from 10% to 25% under the new regime (it stays at 10% for other domestic companies).