Centre moves Taxation and Other Laws (Amendment) Bill, proposes major reforms
The Indian government has introduced the Taxation and Other Laws (Amendment) Bill, 2026, to simplify tax compliance and boost foreign investment. The bill extends tax incentives for electronics manufacturing until 2041 and proposes reforms to digital payment regulations.
Why it matters
These reforms are designed to strengthen India's position as a global manufacturing hub and provide long-term fiscal certainty for international investors.
The Central government on Tuesday introduced the Taxation and Other Laws (Amendment) Bill, 2026 in the Lok Sabha, proposing a series of tax reforms aimed at boosting investment, supporting manufacturing, providing greater tax certainty and replacing the Income-tax (Amendment) Ordinance, 2026.The Bill aims to simplify the framework under the Income-tax Act, 2025 by reducing compliance requirements while retaining essential safeguards, with the objective of promoting fund management activity in India and providing greater tax certainty to global investors, ANI cites.The government said the proposed amendments come against the backdrop of evolving geopolitical developments and disruptions in global trade and supply chains.Electronics manufacturing gets extended tax incentivesThe Bill also proposes to extend tax incentives for electronics manufacturing.
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