New Delhi, Dec. 27 -- The government is poised to amend the Income Tax Act in Budget 2025, introducing a presumptive taxation scheme under Section 44 for foreign semiconductor firms.

The move aims to simplify compliance, attract global companies, and bolster India's semiconductor manufacturing ecosystem, a senior official revealed.

The proposed scheme will allow foreign semiconductor companies to compute taxable income as a fixed percentage of turnover, bypassing detailed accounting.

The corporate income tax rate of 35 percent will then be applied to this calculated income, making tax assessments straightforward and predictable.

"This is a simplified taxation system. Once implemented, their expenditure becomes immaterial-they pay tax ...