The document comprises Frequently Asked Questions issued in connection with the Taxation and Other Laws (Amendment) Bill, 2026. The FAQs address six proposed amendments to the Income-tax Act, 2025 as proposed by the said Bill.

I. Extension of Exemption — Foreign Company Providing Capital Goods to Contract Manufacturer [Schedule IV, Sl. No. 13A]

The exemption on income of a foreign company from providing capital goods, equipment or tooling to an eligible contract manufacturer in a custom bonded area is proposed to be extended from tax year 2030-31 to 2040-41. The Bill also proposes to define “specified electronic goods” to include mobile phones, laptops, all-in-one PCs, tablets, servers, USFF, related sub-assemblies, hearables, wearables and accessories.

II. Amendment of Exemption — Foreign Company Procuring Data Centre Services [Schedule IV, Sl. No. 13C]

The Bill proposes to remove the requirement for Central Government notification of the foreign company and specified data centre. It also proposes to permit leased data centres, in addition to owned data centres, subject to prescribed conditions. The exemption remains available up to March 31, 2047.

III. New Exemption — Foreign Company Selling Rough Diamonds [Schedule IV, Sl. No. 13F]

A new exemption is proposed for income from sale of rough diamonds by eligible foreign diamond mining, sightholder, broker, aggregator, tender or auction entities in Special Notified Zones in Mumbai and Surat. Prescribed information must be maintained and furnished. The exemption will apply for 15 years, up to March 31, 2041.

IV. New Exemption — Foreign Company Storing Components for Contract Manufacturer [Schedule IV, Sl. No. 13G]

A new exemption is proposed for income of a foreign company from storage and sale of components in a warehouse within a custom bonded area for manufacturing specified electronic goods through an Indian contract manufacturer. Prescribed information must be furnished. The exemption will apply up to March 31, 2041.

V. Exemption on Dividend from SPV of Business Trust [Schedule V, Table Sl. No. 5.D]

The Bill proposes to omit Clause (b) of Sl. No. 5.D, making dividend received by a unit holder of a business trust exempt even where the SPV opts for the new tax regime under section 200. A consequential 15% additional surcharge is proposed on such SPVs.

VI. Relaxation of Conditions for Eligible Investment Fund [Schedule I]

The Bill proposes to reduce the conditions for an eligible investment fund from 13 to 5, including non-residency, residence in a DTAA/notified jurisdiction, Indian resident investment capped at 5% of corpus, no business in India, and no business connection through persons acting on its behalf other than the eligible fund manager.