Bill to replace Ordinance exempting FIIs from tax on govt securities
The government listed a Bill in Parliament to replace an Ordinance issued in June. The Ordinance had exempted foreign institutional investors and the Bank for International Settlements from capital gains tax, and from tax on interest earned, on their investments in government securities. The Bill seeks to give the exemption statutory backing.
Nabka Insight
Converting a fiscal Ordinance into law — tests both polity (Ordinance route) and economy (FII taxation).
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- Bill listed in Parliament to replace a June 2026 Ordinance.
- Beneficiaries: foreign institutional investors (FIIs) and the Bank for International Settlements.
- Exemption covers capital gains tax and tax on interest from government securities.
Background
Relevant forSSC · State PSC · UPSC