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Business News | Government to Introduce Bill to Bar Charges on Notified Digital Payments, Will Entail Tax Changes Across Key Sectors
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It provides that no bank or payment system provider shall levy charges on electronic payment modes notified by the Central Government, a move aimed at encouraging wider adoption of digital transactions across the country.
The proposed legislation also contains several tax-related measures covering foreign investment, electronics manufacturing, fund management, data centres, the diamond industry and business trusts.
To encourage investment in government securities, the Bill proposes tax exemption for Foreign Institutional Investors (FIIs) on interest income and capital gains arising from investments in Government Securities (G-Secs).
A similar tax exemption has also been proposed for the Bank for International Settlements (BIS) on its investments in government securities.
In a major push for the electronics manufacturing sector, the government has proposed extending the tax exemption for contract manufacturing until FY2040-41.