Govt lists Bill to replace Ordinance that exempted FIIs from tax
The government listed a Bill in Parliament to replace an Ordinance, promulgated in June, that had exempted foreign institutional investors (FIIs) and the Bank for International Settlements from capital gains tax and from tax on interest earned on their investments in government securities. Replacing an Ordinance with an Act within the stipulated period is a constitutional requirement.
Nabka Insight
The replacement of an Ordinance by a Bill, and the specific FII tax exemptions on G-secs, touch both polity and economy.
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- Bill listed to replace a June 2026 Ordinance.
- Ordinance exempted FIIs and the Bank for International Settlements.
- Exemption covered capital gains tax and tax on G-sec interest income.
- Applies to investments in government securities.
Background
Relevant forSSC · State PSC · UPSC