The Government of India has issued the Income-tax (Amendment) Ordinance, 2026 to amend and further modify the Income-tax Act, 2025. The said Income-tax (Amendment) Ordinance, 2026 was issued by President Droupadi Murmu on 5th June, 2026 and shall come into force on the same day as it is deemed to have come into force on 1st April, 2026.
Key Changes
Two new exemptions have been introduced by the amendment in Schedule IV to the Income-tax Act, 2025. The said amendments shall now form part of two new exemptions, namely, exemption 13D and exemption 13E.
Foreign Institutional Investors (FIIs) are to be granted a tax exemption on the following income:
- Interest earned on Government securities.
- Capital gains arising from the sale, exchange, or transfer of such securities.
- BIS (Bank for International Settlements) and its subsidiaries, also would be entitled to similar tax exemption.
- Interest income from Government securities.
- Capital gains from their transfer.
