India Introducing Several Amendments to Income-Tax Act to Foster Economic Growth and Simplify Compliance

India's Lok Sabha passed the Taxation and Other Laws (Amendment) Bill, 2026 on 6 August 2026, which introduces several amendments to the Income-tax Act, 2025 aimed at fostering economic growth and simplifying compliance. The measures of the Bill are explained in an FAQ document issued by the Indian Income Tax Department, summarized as follows:

Extension of Exemption for Capital Goods Provided to Contract Manufacturers

Under existing provisions of the Income-tax Act, 2025, a foreign compa…