Finance Bill 2026 Introduced In Lok Sabha By FM Sitharaman

Finance Minister Nirmala Sitharaman placed the Finance Bill 2026 before the Lok Sabha, taking an important step towards implementing the Budget proposals for 2026–27. The provisions will become effective after parliamentary approval.

The Bill proposes updates to income tax rates as well as revisions in customs and excise duties outlined in the Budget. These measures are designed to support the government’s fiscal priorities.

Sitharaman additionally introduced the Corporate Laws (Amendment) Bill 2026 in the House. Members agreed to send the Bill to a Joint Parliamentary Committee for a detailed review.

The proposed changes seek to amend the Limited Liability Partnership Act, 2008, and the Companies Act, 2013. The objective is to streamline compliance, remove criminal penalties for minor violations and substitute them with civil provisions.

The reforms are also intended to ease regulatory burdens for small businesses, start-ups and farmer-led producer companies.

Opposition Voices Reservations

Opposition leaders, including Manish Tewari, Sougata Ray and T Sumathy, raised objections to the Bill. They expressed concerns that certain provisions may dilute Corporate Social Responsibility requirements.

Addressing the criticism, Sitharaman said the amendments would attract investment and improve governance standards. She emphasised that the reforms aim to balance ease of doing business with accountability.

The Finance Minister said the legislation was prepared after extensive consultations over two years. Feedback from industry groups, professional bodies and legal experts was taken into account before finalising the draft.

The amendments are based on inputs from the Company Law Committee set up in 2019. The panel included members such as T K Viswanathan, Uday Kotak, Shardul S. Shroff, G Ramaswamy and Sidharth Birla.

Its recommendations were further examined by a high-level committee led by Rajiv Gauba.

The second phase of the Budget Session resumed on Monday following a short break for festive holidays. Additional sittings have been scheduled later this week to compensate for the recess.

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