Overview
Finance Minister Nirmala Sitharaman introduced the Taxation (Amendment) Bill, 2026 in the Lok Sabha on 2 April 2026. The Bill seeks to extend tax holidays, simplify rules for foreign fund managers, and give incentives to data‑centre operators, thereby supporting the Make in India agenda.
Key Developments
- Extension of the income‑tax exemption for foreign suppliers of capital goods to Indian electronics factories from five years to fifteen years, now lasting up to FY 2040‑41.
- Clear definition of eligible electronic goods – mobile phones, laptops, PCs, tablets, servers, wearables and related accessories.
- Removal of multiple government approvals for foreign cloud providers using Indian data centres; Indian data centres may now be operated on a leased basis.
- Streamlining of conditions for foreign fund managers so that relocating to India does not automatically make the fund taxable here.
- Restoration of dividend tax exemption for REITs and InvITs, even after the operating company shifts to the new tax regime.
Important Facts
The Bill proposes amendments to three statutes: the Payment and Settlement Systems Act, 2007, the Income‑tax Act, 2025, and the