Lok Sabha Passes Bill Granting Tax Exemption To Foreign Bond Investors

India's government borrows money by selling special savings plans called government bonds.

People who buy these bonds earn interest on their money.

Now, the Lok Sabha, which is one part of India's parliament, passed a new law.

This law says that investors from other countries do not have to pay income tax on the money they earn from these bonds.

Before this law, those investors had to pay tax on their interest and profits.

The government thinks this will make big foreign investors, like pension funds and insurance companies, want to lend money to India.

It hopes this brings in stable, long-term money and makes India's bond market bigger.

The new tax rule starts from April 1, 2026.

It replaces an earlier temporary rule made by the government.

So foreign investors can now earn tax-free income from Indian government bonds.