FM Sitharaman tables Finance Bill 2026 in Lok Sabha
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New Delhi: Finance Minister Nirmala Sitharaman on Monday, March 23, tabled the Finance Bill, 2026, in the Lok Sabha, a key legislative step to provide legal backing to proposals announced in the Union Budget for 2026-27.
Once passed, the Finance Bill will implement changes in income tax rates, as well as customs and excise duties announced in the Budget.
Alongside, the Finance Minister introduced the Corporate Laws (Amendment) Bill, 2026, in the Lok Sabha. The House approved its reference to the Joint Parliamentary Committee (JPC) for detailed scrutiny. The Bill seeks to amend the Limited Liability Partnership Act, 2008, and the Companies Act, 2013, to facilitate ease of doing business, decriminalise minor offences, replace certain criminal provisions with civil penalties, and reduce compliance burdens for small firms, startups, and farmer-owned companies.
Opposition members, including Congress’s Manish Tewari, TMC’s Sougata Roy, and DMK’s T. Sumathy, opposed the Bill, alleging that it dilutes Corporate Social Responsibility provisions. Responding, FM Sitharaman said the amendments are designed to attract investments while enhancing corporate governance.
She emphasised that the legislation was prepared after two years of consultation, involving industry chambers, professional institutes, legal and accounting experts, and public feedback.
The amendments are based on recommendations of the 11-member Company Law Committee (CLC), constituted in September 2019, which included former Lok Sabha Secretary General T.K. Viswanathan, Kotak Mahindra Bank Managing Director Uday Kotak, Shardul Amarchand Mangaldas & Co Executive Chairman Shardul S. Shroff, chartered accountant G. Ramaswamy, and Xpro India Chairman Sidharth Birla. The CLC submitted its final report on March 21, 2022.
The proposals were also reviewed by the High-Level Committee on Non-Financial Regulatory Reforms (HLC-NFRR), chaired by former Cabinet Secretary and NITI Aayog member Rajiv Gauba. The committee was announced by FM Sitharaman in her 2025-26 Budget speech to review all non-financial regulations, certifications, licenses, and permissions.
The second phase of the Budget Session reconvened on Monday at 11 a.m. after holidays on Thursday and Friday for Ugadi and Eid. Parliament is scheduled to sit on March 28 and 29 to compensate for the holidays.
With IANS inputs