Jagran Bureau, New Delhi | The government is set to provide income tax exemptions to domestic companies for the next 15 years, aiming to encourage the manufacturing of electronic items in the country. The proposal has been made in the Taxation and Other Laws (Amendment) Bill, 2026, which was introduced in the Lok Sabha on Tuesday.

What Are The Provisions In The Bill?

According to the bill, if a foreign company supplies machinery and other components to an Indian factory for the manufacturing of electronic items, the income generated by the Indian company from this manufacturing will now be tax-free for 15 years. This was originally proposed for five years, but after consultation with stakeholders, this period has been extended by another ten years.

Mobile Phones, Laptops, And Tablets To Become Cheaper

According to the Income Tax Department, the income of such Indian companies will now be tax-free until the financial year 2040-41. The department has also clarified that the exemptions on income cover the manufacturing of electronic items, including mobile phones, laptops, personal computers, tablets, servers, and their key parts.

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Another tax change is proposed to encourage electronic manufacturing. Currently, foreign companies supplying components to Indian electronics manufacturing companies store them in warehouses near their units so that the production of the companies manufacturing for them is not affected. The government levies a two per cent tax on this. Now, these have also been exempted from tax for the next fifteen years. This will encourage foreign companies to source manufacturing from Indian companies.

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Attempt To Attract Global Fund Managers

Changes are also being made in the bill related to amending the tax law to encourage global fund managers to come and work in India. According to the proposal, currently, if a global fund manager comes to India to conduct business, they must comply with several conditions. Now all those conditions are being removed. The only thing that will be taken into account is that their funds are not misused by Indians.