Ministry of Parliamentary Affairs · GODL-IndiaGovernment lists Bill in Parliament to replace Ordinance that exempted FIIs from tax
The government introduced a Bill in Parliament to replace an Ordinance promulgated in June that had exempted foreign institutional investors (FIIs) and the Bank of International Settlements from capital gains tax and from tax on interest earned on their holdings of government securities. Converting the Ordinance into law requires parliamentary approval within the constitutionally mandated period.
Nabka Insight
Tests the Ordinance-to-law route and the taxation of foreign investors in G-secs.
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- Bill replaces an Ordinance issued in June 2026.
- Ordinance exempted FIIs and the Bank of International Settlements.
- Exemption covered capital gains tax and tax on interest.
- It applied to their investments in government securities.
Background
Relevant forSSC · State PSC · UPSC