President of India has promulgated the Income-tax (Amendment) Ordinance, 2026, published in the Gazette of India, Extraordinary, Part II, Section 1, as Parliament was not in session. The Ordinance further amends the Income-tax Act, 2025. The Ordinance is deemed to have come into force on April 01, 2026.

In the Income-tax Act, 2025, in Schedule IV, in the Table, after serial number 13C and entries relating thereto, the following shall be inserted, namely:

“13D. Any interest on Government security, and any capital gains arising from the sale, exchange or transfer of such Government security. — A Foreign Institutional Investor. — Such exemption shall be subject to furnishing of information in such form and manner, as may be prescribed.

13E. Any interest on Government security, and any capital gains arising from the sale, exchange or transfer of such Government security. — Bank for International Settlements. — Such exemption shall be subject to furnishing of information in such form and manner, as may be prescribed.”

After Note 3 below the Table, the following Note shall be inserted, namely:

‘Note 4: For the purposes of Sl. Nos. 13D and 13E, –– (a) “Bank for International Settlements” means the Bank for International Settlements established at the Hague Conference in 1930 and headquartered at Basel, Switzerland; (b) “Foreign Institutional Investor” shall have the meaning assigned to it in section 210(6)(a); (c) “Government security” shall have the same meaning as assigned to it in section 2(f) of the Government Securities Act, 2006.’