India's Lok Sabha passes 2026 tax bill to attract investors
India's Lok Sabha just passed a new taxation bill for 2026, aiming to make the country more attractive for foreign investors and boost local manufacturing.
The bill updates several older tax laws and promises clearer tax rules, hoping to make it easier for businesses, especially global ones, to work in India.
Bill extends targeted tax incentives
The bill extends tax breaks for foreign suppliers of capital goods to Indian electronics makers until 2041, and gives a 15-year tax holiday to foreign firms storing electronic parts in customs warehouses.
It also offers tax exemptions on government securities income for Foreign Institutional Investors (FIIs) and supports India's diamond trade with extended benefits.
Plus, the government now has more power to regulate digital payment charges, so smoother online transactions could be on the way.