India: Proposed tax amendments in response to global economic conditions and supply-chain disruptions
Generally proposed to be effective April 1, 2026
In response to evolving global economic conditions and supply-chain disruptions, the government of India has introduced in the lower house of Parliament (Lok Sabha) the Taxation and Other Laws (Amendment) Bill, 2026, which includes proposed tax amendments related to:
- Exemption for foreign companies in connection with contract manufacturing of electronics goods by an Indian company and procurement of data center services
- Exemption to unit holders of business trusts
- Provisions related to offshore investment funds
- Exemption to foreign institutional investors (FIIs) and the Bank for International Settlements (BIS) on interest income and capital gains arising from government securities, as previously provided in a June 2026 ordinance
The amendments are generally proposed to be effective April 1, 2026.
Read an August 2026 report prepared by the KPMG member firm in India