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Taxation and Other Laws (Amendment) Act 2026 Gets Assent

22 August 20261 min read
BANKING & FINANCETaxation andOther Laws(Amendment) Act2026 Gets Assent22 August 2026safalsetu.com

Why in the news

The President approved two legislative changes: a tax amendment law and amendments to the payments law, both in August 2026.

Key facts

  • Assent by: President Murmu.
  • Tax law: Taxation and Other Laws (Amendment) Act, 2026, which replaces the Income-tax (Amendment) Ordinance, 2026.
  • Tax relief for chosen FIIs and the Bank for International Settlements (BIS) covering income and gains from G-secs.
  • Payment law: 2007 Payment and Settlement Systems Act, now amended.
LawChange
Taxation and Other Laws (Amendment) Act, 2026Replaces ordinance; tax relief for chosen FIIs and BIS
Payment and Settlement Systems Act, 2007Legal basis for levying charges on certain digital payment modes modified

Significance

  • Intended to attract foreign capital.
  • Intended to support domestic electronics manufacturing.

Exam angle

  • An ordinance gets replaced by an Act once Parliament passes it and the President assents.
  • Payment law year: 2007.
  • Exemption beneficiaries: specified FIIs and BIS.

Test yourself

1. Which ordinance did the Taxation and Other Laws (Amendment) Act, 2026 replace?

It replaces the Income-tax (Amendment) Ordinance, 2026.

2. Besides specified FIIs, which institution gets tax exemption on government securities income under the 2026 Act?

The BIS is exempt on interest and capital gains.

3. Which existing payments law was amended along with the 2026 taxation law?

Amendments to the Payment and Settlement Systems Act, 2007 were assented.

This topic is part of Daily Current Affairs 21 August 2026 (25 topics).

All topics of the dayDay quizAugust 2026

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