Kathmandu— The Rajya Sabha is scheduled to take up the Taxation and Other Laws (Amendment) Bill and the Bankers’ Books Evidence Bill on Monday following their passage by the Lok Sabha. Finance Minister Nirmala Sitharaman is expected to move both pieces of legislation for consideration and passing in the House, addressing a range of economic and digital banking reforms.

Taxation Reforms and Investment Incentives

The Taxation and Other Laws (Amendment) Bill, 2026, seeks to amend the Payment and Settlement Systems Act, 2007, the Income-tax Act, 2025, and the Finance Act, 2026. Designed to replace the Income-tax (Amendment) Ordinance, 2026, the bill aims to boost investment, support manufacturing, and provide greater tax certainty amidst evolving geopolitical developments and global trade disruptions.

Key proposals include the rationalization of conditions for offshore investment funds and the introduction of fresh tax exemptions for foreign investors in government securities. Specifically, the bill proposes to exempt interest income and capital gains for Foreign Institutional Investors (FIIs) and the Bank for International Settlements regarding government securities, subject to reporting requirements. Additionally, the bill seeks to extend tax exemptions for foreign companies supplying capital goods to Indian contract manufacturers for specified electronic goods until March 31, 2041, expanding the scope to include products like laptops, tablets, and wearables.

Modernizing Banking Evidence Laws

The Bankers’ Books Evidence Bill aims to modernize the legal framework for the admissibility of bank records, aligning it with contemporary digital banking practices. The legislation seeks to replace the outdated Bankers’ Books Evidence Act, 1891, which was designed for an era when records were primarily physical.

The new bill expands the definition of ‘bankers’ books’ to include records maintained in physical, electronic, digital, virtual, and cloud-based forms. This technology-neutral framework is intended to ensure that banking evidence law keeps pace with technological advancements, ensuring the authenticity and reliability of records produced before courts and authorities in an increasingly digital environment.

The two bills were previously passed by the Lok Sabha via voice vote amid protests from opposition members.

(With inputs from ANI)

Originally published on abcnews.com.np.