Monsoon Session 2026 puts spotlight on new income tax laws, foreign funding rules and reform bills

The Centre is set to push a series of key economic and governance reforms during the Monsoon Session of Parliament, which begins on July 20 and will continue until August 13. The government's legislative agenda includes bills related to foreign funding regulations, income tax reforms, MSME development, higher education, and judicial reforms.

Among the priority legislations is the Foreign Contribution (Regulation) Amendment Bill, 2026, which seeks to amend the legal framework governing foreign contributions and strengthen the regulatory regime.

The government is also expected to move forward with the Viksit Bharat Shiksha Adhishthan Bill, 2025, aimed at overhauling the higher education ecosystem. The Bill was introduced in the Lok Sabha and has since been referred to a Joint Parliamentary Committee (JPC) for examination.

More from Business

On the economic front, the Income-tax (Amendment) Bill, 2026 is expected to replace an earlier ordinance that extended tax exemptions for foreign investors on income earned from specified government securities. The measure is intended to encourage foreign capital inflows and deepen India's sovereign debt market.

The legislative agenda also includes the Supreme Court Amendment Bill, 2026, which proposes increasing the sanctioned strength of Supreme Court judges from 33 to 37, excluding the Chief Justice of India, in an effort to reduce the growing backlog of pending cases.

To improve the ease of doing business for small enterprises, the government will introduce the Micro, Small and Medium Enterprises Development (Amendment) Bill, 2026. The proposed amendments seek to strengthen mechanisms for resolving delayed payment disputes, improve the functioning of MSME Facilitation Councils and provide states with greater flexibility in implementing dispute resolution measures.

In addition, the Centre has proposed amendments to the Registration of Births and Deaths Act to tighten provisions related to delayed registration, along with changes to the Prevention of Insults to National Honour Act.

The Monsoon Session, scheduled from July 20 to August 13, is expected to witness the government pushing several pending and new legislations as part of its broader economic, administrative and institutional reform agenda.