Lok Sabha passes Taxation and Other Laws (Amendment) Bill, 2026

Key facts

• The Lok Sabha passed the Taxation and Other Laws (Amendment) Bill, 2026 to attract foreign investment, promote domestic manufacturing, and provide greater tax certainty.
• The Bill replaces the Income-tax (Amendment) Ordinance, 2026 and amends the Income-tax Act, 2025, the Finance Act, 2026, and the Payment and Settlement Systems Act, 2007.
• It extends the tax holiday for foreign companies supplying capital goods, equipment, and tooling to contract manufacturers of specified electronic goods.
• The Bill introduces a 15-year tax holiday for foreign companies selling rough diamonds in India, including eligible trading and auction entities.
• It also proposes a 15-year tax exemption for foreign companies storing electronic components in bonded warehouses for supply to Indian contract manufacturers of specified electronic goods.
• The Bill relaxes eligibility conditions for foreign companies procuring services from Indian data centres.