India Passes Tax Bill Amid Protests Over Police Action

Finance Minister Nirmala Sitharaman today moved the Taxation and Other Laws (Amendment) Bill, 2026 for consideration and passing in Lok sabha. The Bill was passed amid din without any discussion. It seeks to amend the Payment and Settlement Systems Act, 2007, the Income-tax Act, 2025, and the Finance Act, 2026. The bill will replace the Income-tax (Amendment) Ordinance, 2026, which was promulgated on 5th June this year. The Ordinance was promulgated with the objective of mitigating the impact of external economic shocks, ensuring stability in the domestic economy and supporting key sectors affected by the prevailing global conditions by amending certain provisions of the Act.The Bill further exempts foreign institutional investors and the Bank for International Settlements from paying income tax on interest earned on investments in government securities. The exemption will apply to income arising on or after 1st April this year. Previously, under the Income-tax Act, interest income was taxed at 20 per cent, short-term capital gains at 30 per cent and long-term capital gains at 12.5 per cent. The Bill further amends the Income-tax Act to exempt income earned by certain foreign companies from the sale of rough diamonds in a notified special zone.Following the passage of the bill, the Lower House was adjourned for the day.Earlier, when the House met at 11 AM, Lok Sabha paid tributes to the victims of the atomic bombings of Hiroshima and Nagasaki. Lok Sabha Speaker Om Birla stated that today marks 81 years of the tragic atomic bombings of Hiroshima and Nagasaki in Japan. He said that on 6th and 9th of August, atomic bombs were dropped on these two cities, resulting in the deaths of lakhs of innocent civilians, and leaving countless others injured. Mr Birla said that the world, for the first time, came to know about the devastating impact of nuclear weapons after this incident. The Speaker said that the House reiterates its commitment to a world free of weapons of mass destruction and resolves to work collectively to eliminate nuclear weapons and ensure global peace and harmony.The House also observed silence in memory of the victims of the atomic bombings of Hiroshima and Nagasaki. After that, Mr Birla tried to take up the Question Hour, but the opposition members raised the issue of alleged police action during students’ protests. The opposition members were demanding a statement from Union Home Minister Amit Shah on alleged police action during students’ protests. The Speaker said, Question Hour is an important part of the proceedings, which provides every member an opportunity to raise issues.Mr Birla added that Parliament is meant for discussion, for raising questions, and for meaningful exchange of ideas. As the pandemonium continued, the Lok Sabha was adjourned till 2 PM.