Income Tax Department issues FAQs to clarify 2026 amendment bill
The Income Tax Department just dropped a set of FAQs to break down the main changes in the 2026 Taxation and Other Laws (Amendment) Bill.
The goal? Make tax rules less confusing, cut down on paperwork, and encourage more global capital, manufacturing, and business.
Bonded-area foreign suppliers get tax extension
Foreign firms supplying capital goods to a contract manufacturer resident in India located in a custom bonded area now get tax breaks for 10 extra years, up to 2040-41.
The Bill also spells out what counts as "specified electronic goods" (think phones, laptops, servers, and wearables), allows a leased model of operation for the Indian data center and removes notification requirements, and removes some old notification hassles.
Proposed exemption for foreign diamond sellers
A new exemption is proposed for eligible foreign companies selling rough diamonds, available until March 31, 2041.
Plus, it is now simpler for fund managers to relocate to India thanks to relaxed compliance requirements, all part of making India a more attractive destination for global capital, manufacturing, and business by simplifying tax rules, reducing compliance, and improving policy certainty.