Mumbai, June 8 -- The PHD Chamber of Commerce and Industry (PHDCCI) welcomes the Income-tax (Amendment) Ordinance, 2026, which exempts interest income and capital gains earned by Foreign Institutional Investors (FIIs) and the Bank for International Settlements (BIS) from investments in Government Securities. It is a significant step towards strengthening India's sovereign debt market and enhancing the attractiveness of Indian Government Securities as a global investment asset class. By improving post-tax returns for foreign investors, the measure is expected to encourage greater participation in both the Fully Accessible Route (FAR) and the General Route, thereby broadening the investor base for Government borrowing.
The tax exemption is e...