Income Tax 31 July 2026
India Tax Exemption News
The Union Cabinet may soon give a nod to making tax exemptions for government securities permanent for Foreign Institutional Investors and Foreign Portfolio Investors, which could lead to amendments in the Income Tax Act to include government securities, the move is subject to cabinet approval and is expected to boost investment in government securities
The Indian government is considering making tax exemptions for government securities permanent for Foreign Institutional Investors and Foreign Portfolio Investors.
Once the Cabinet nod is in place, the Income Tax Act will be amended to include government securities within its ambit.
The key points of the tax exemption are:
- the exemption will be made permanent for FIIs and FPIs
- the exemption will apply to government securities
- the move is subject to cabinet approval
- the move is expected to boost investment in government securities
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