CBDT proposes electronics manufacturing tax relief through FY2040-41

The Taxation Amendment Bill 2026 proposes extending tax exemptions for foreign firms supplying equipment and components to Indian electronics contract manufacturers, including through bonded warehouses. The measures require parliamentary passage and presidential assent.

— Filed Wed, 5 Aug, 2026, 06:26 IST · Source Business Today · Latest · Updated

CBDT outlined Taxation Amendment Bill proposals extending tax relief for foreign firms supplying equipment or components to Indian electronics contract manufacturers, including bonded-warehouse sales. The bill also proposes data-centre, rough-diamond and REIT/InvIT tax changes, subject to parliamentary approval.

Why this matters

CBDT's proposed electronics manufacturing relief follows its recent crypto-reporting rules that raised compliance requirements for merchants and exchanges, signaling parallel tax-policy action on industrial supply chains and digital commerce.

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