EconomyTuesday, 4 August 2026·The Hindu - Economy
Taxation and Other Laws (Amendment) Bill, 2026: key changes for FDI, data centres and REITs/InvITs
The Lok Sabha saw a 2026 Bill to amend tax laws for foreign capital, data centres, fund managers and REIT/InvIT dividends.
Key highlights
Direct fact
On Tuesday in 2026, Finance Minister Nirmala Sitharaman introduced the Taxation and Other Laws (Amendment) Bill, 2026 in the Lok Sabha to amend the Payment and Settlement Systems Act, 2007, the Income-tax Act, 2025 and the Finance Act, 2026.
Key specifics
- The Bill extends a tax exemption for certain foreign companies up to 2040-41, adding 10 years to the existing 5-year limit.
- It covers electronic goods such as mobile phones, laptops, personal computers, tablets, servers and wearables.
- The Bill removes approval requirements for foreign cloud companies using Indian data centres.
- It allows Indian data centres to be run on a leased basis, not only under direct ownership.
- It restores tax-free dividends for REITs and InvITs even after the operating company shifts to the new tax regime.
Exam lens
Economy and taxation, Lok Sabha legislation, FDI facilitation, data centre policy and REIT/InvIT taxation are the TNPSC focus areas; expect a question on the three Acts amended in 2026.