# The Finance Act, 2026, Section 124: Amendment of Schedule IV

- Act: The Finance Act, 2026 (Act 4 of 2026)
- Ministry: Ministry of Finance
- Source URL: https://indiacode.ecourtsindia.com/finance-act-2026/section/124/

## Text

Amendment of Schedule IV. 124. In Schedule IV to the Income-tax Act,— (a) | in the Table, after serial number 13 and the entries relating thereto, the following shall be inserted, namely:— A | B | C | D "13A. | Any income arising on account of providing capital goods, equipment or tooling to a contract manufacturer, being a company resident in India. | A foreign company, who is providing capital goods, equipment or tooling to the contract manufacturer for use in electronic manufacturing in India. | (a) | Ownership of such capital goods, equipment or tooling remains with the foreign company; (b) | such capital goods, equipment or tooling is under the control and direction of the contract manufacturer; (c) | the contract manufacturer is located in a custom bonded area, that is, a warehouse referred to in section 65 of the Customs Act, 1962 (52 of 1962); (d) | the contract manufacturer produces electronic goods on behalf of the foreign company for a consideration; (e) | such exemption shall be available up to the tax year 2030-2031. 13B. | Any income which accrues or arises outside India, and is not deemed to accrue or arise in India. | An individual, being a non-resident for a period of five consecutive tax years immediately preceding the tax year during which he visits India for the first time for rendering services in India in connection with any scheme as may be notified by the Central Government. | (a) | Such individual, during the relevant tax year renders any service in India in connection with any scheme as may be notified by the Central Government; (b) | such exemption shall not be available beyond a period of five consecutive tax years commencing from the first tax year during which he visits India in connection with such scheme; and (c) | such other conditions, as may be prescribed. 13C. | Any income accruing or arising in India or deemed to accrue or arise in India by way of procuring data centre services from a specified data centre. | A foreign company. | (a) | Such foreign company is notified by the Central Government in this behalf; (b) | such foreign company does not own or operate any of the physical infrastructure or any resources of the specified data centre; (c) | all sales by such foreign company to users located in India are made through a reseller entity being an Indian company; (d) | such foreign company maintains and furnishes such information in such form and manner, as may be prescribed; and (e) | such exemption shall be available up to tax year ending on the 31st March, 2047."; (b) | after Note 2 below the Table, the following Note shall be inserted, namely:— 'Note 3: For the purposes of Sl. No.13C,— (a) | "data centre" means a dedicated secure space within a building or centralised location where computing and networking equipment is concentrated for the purpose of collecting, storing, processing, distributing or allowing access to large amounts of data; (b) | "data centre services" means the services provided by a data centre through the use of physical infrastructure including land, buildings, mechanical electrical power equipments, cooling system, security and information technology infrastructure including servers, computers, storage systems, operating systems, security solutions, network and associated software platforms, networking and other equipment, human resource in India; (c) | "specified data centre" means a data centre which is— (i) | set up under an approved scheme and is notified in this behalf by the Central Government in the Ministry of Electronics and Information Technology; and (ii) | owned and operated by an Indian company.'.

---
Published by eCourtsIndia together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957.