Changes to boost electronics, investment

Finance Minister Nirmala Sitharaman proposed amendments to tax laws, extending tax exemption for specified electronic goods by 10 years to tax year 2040-41.

The bill replaces 'electronic goods' with a defined list of 'specified electronic goods', including mobile phones, laptops, tablets, servers, wearables, and hearables.

A new tax exemption for foreign companies storing and selling electronic components through customs bonded areas, supplied to Indian contract manufacturers of specified electronic goods, is proposed until 31 March 2041.

Conditions for offshore investment funds are rationalized, and dividend tax neutrality is proposed for REIT and InvIT investors.

Government proposes a 15-year tax exemption on income from sale of rough diamonds for overseas companies involved in diamond mining or related activities, ending in March 2041.