The government will take up two legislative proposals in the Lok Sabha today as Parliament resumes proceedings for the second phase of the Budget Session. Union Finance Minister Nirmala Sitharaman will move the Finance Bill, 2026 and introduce the Corporate Laws Amendment Bill, 2026.
The Finance Bill is required to operationalise the Union Budget for the 2026–27 financial year. Once Parliament approves it, the Bill will give legal backing to the government's taxation and fiscal measures announced in the Budget, allowing them to come into force from the next financial year.
Alongside fiscal legislation, the government will also move corporate law reforms. The Corporate Laws Amendment Bill proposes changes to the Companies Act, 2013 and the Limited Liability Partnership Act, 2008. The objective is to simplify compliance requirements and reduce the use of criminal provisions for routine corporate lapses.
Officials said the proposed changes shift several minor violations from criminal liability to monetary penalties. The move will lower compliance costs and reduce legal exposure for businesses, particularly smaller companies and startups.
The Bill also seeks to provide regulatory relief to producer companies, which are entities formed by groups involved in agricultural and allied activities such as farming, fisheries and animal husbandry. These entities have been a focus of recent corporate law reforms.
The Cabinet cleared the Corporate Laws Amendment Bill earlier this month.
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