New tax Bill boosts data centres, electronics contract manufacturing

The government has proposed significant tax incentives for foreign data centre service providers and extended tax benefits for companies supplying machinery and equipment to India’s electronics contract manufacturing sector through the Taxation and Other Laws (Amendment) Bill, 2026.

The Bill, introduced in the Lok Sabha on Tuesday, seeks to replace the Income-tax (Amendment) Ordinance, 2026, and amend the Income-tax Act, 2025, the Finance Act, 2026, and the Payment and Settlement Systems Act, 2007.