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हिन्दी — Read in HindiDirect taxes
Taxes on income and wealth, and the laws and treaties that govern them.
All 3 articles shown; the 2 that changed from 1 to 31 August 2026 are marked.Show only these
India and Sri Lanka tax treaty and the Principal Purpose Test
Copy link to India and Sri Lanka tax treaty and the Principal Purpose TestPrelims
The Principal Purpose Test denies the benefits of a tax treaty to an arrangement made mainly to obtain those benefits.
What changed
16 Jul 2026Briefnewly addedNotification No. 88/2026 gave effect to the protocol amending the India and Sri Lanka Double Taxation Avoidance Agreement (DTAA), adding the Principal Purpose Test. It implements Base Erosion and Profit Shifting (BEPS) Action 6 and applies in India from 2027-28. Income Tax Department, 16 Jul 2026: Notification No. 88/2026: protocol amending the India and Sri Lanka Double Taxation Avoidance Agreement (opens in a new tab)
Taxation and Other Laws (Amendment) Act, 2026
Copy link to Taxation and Other Laws (Amendment) Act, 2026Prelims
The Taxation and Other Laws (Amendment) Act, 2026 changes income tax exemptions for foreign entities and amends the Payment and Settlement Systems Act, 2007.
- Income tax exemptions for foreign entities are used to draw investment into chosen activities, such as government bond holdings, diamond trading and electronics supply chains.
- Interest on government securities and gains on them are normally taxable for foreign investors, which raises the cost of foreign participation in the government bond market.
- Business trusts, such as infrastructure and real estate investment trusts, hold assets through special purpose vehicles (SPVs) that pass income on to unit holders.
What changed
6 Aug 2026Newnewly added
- The Lok Sabha passed the Bill on 6 August and the Rajya Sabha on 10 August; it exempts Foreign Institutional Investors (FIIs) and the Bank for International Settlements from tax on interest and capital gains from government securities.
- Foreign companies selling rough diamonds in notified zones or storing electronic components in bonded warehouses are exempt from 1 October 2026 to 31 March 2041.
- The surcharge on the special purpose vehicles of business trusts rises from 10 to 25 per cent, while unit holders are exempt from tax on dividends from them.
The Hindu, 6 Aug 2026: Lok Sabha passes Bill to authorise Govt. to permit banks to levy charges on UPI transactions (opens in a new tab) · PRS Legislative Research, 10 Aug 2026: Bill track: the Taxation and Other Laws (Amendment) Bill, 2026 (opens in a new tab)
17 Aug 2026Briefnewly addedThe Act received Presidential assent on 17 August and repeals the Income-tax (Amendment) Ordinance, 2026 of 5 June, which had first given the government securities exemption. It amends the Payment and Settlement Systems Act so that the payment modes exempt from merchant charges are those the Centre notifies, the legal basis for the September change on Unified Payments Interface (UPI) charges. StudyCafe, 17 Aug 2026: Centre notifies Taxation and Other Laws (Amendment) Act, 2026 (opens in a new tab) · The Hindu, 18 Aug 2026: Amendment to Taxation Act, Payment and Settlement Systems Act get President's assent (opens in a new tab)
Foreign Assets Disclosure Scheme for small taxpayers
Copy link to Foreign Assets Disclosure Scheme for small taxpayersPrelims
The Foreign Assets Disclosure Scheme lets small taxpayers declare undisclosed foreign assets on payment of a share of their value.
What changed
14 Aug 2026Briefnewly addedRules notified on 14 August 2026 let small taxpayers declare undisclosed foreign assets of up to ₹1 crore, or overseas assets up to ₹5 crore, by paying 60 per cent of their value. Declarations close on 31 December 2026, with values taken as on 31 March 2026. PRS Legislative Research, 14 Aug 2026: Monthly Policy Review, August 2026 (opens in a new tab)