Effective from April 1, 2026, Section 44BBD introduces a special provision for taxing non-residents providing services or technology for electronics manufacturing in India.

Key Provisions:

Applicability: Non-residents offering services/technology to resident companies setting up electronics
manufacturing facilities under a government-notified scheme.
Presumptive Taxation: 25% of the total amounts received/payable for such services is deemed as taxable profits.
Computation: Includes payments received/payable for services or technology.
Restriction: No set-off of unabsorbed depreciation or brought forward losses.
This provision simplifies tax compliance for non-residents, encouraging foreign participation in India’s electronics manufacturing sector under a clear and predictable framework.