Budget 2026 Brings Tax Clarity for India’s Technology Companies and GCCs with Unified IT Services Category and Automated Safe Harbour Approvals

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The Union Budget 2026 has offered India’s technology companies and global capability centres (GCCs) a moment of clarity after years of tax uncertainty and classification disputes. Finance Minister Nirmala Sitharaman in the Budget has reduced friction and made tax compliance more predictable for the sector by bringing all IT and IT-enabled services under a single category, fixing a 15.5% safe harbour margin, and expanding eligibility for these rules.

Outlining the rationale for the changes, the FM said India is already “a global leader in software…



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Budget 2026 Brings Tax Clarity for India’s Technology Companies and GCCs with Unified IT Services Category and Automated Safe Harbour Approvals


The Union Budget 2026 has offered India’s technology companies and global capability centres (GCCs) a moment of clarity after years of tax uncertainty and classification disputes. Finance Minister Nirmala Sitharaman in the Budget has reduced friction and made tax compliance more predictable for the sector by bringing all IT and IT-enabled services under a single category, fixing a 15.5% safe harbour margin, and expanding eligibility for these rules.

Outlining the rationale for the changes, the FM said India is already “a global leader in software…



Source link

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We StartupNews.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.

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