Finance Minister Nirmala Sitharaman has proposed a tax holiday until 2047 for foreign companies that deliver cloud services to global customers through data centres located in India. The announcement came during the Union Budget 2026 – 27 speech in the Lok Sabha. Alongside this, related entities providing data-centre services from India can opt for a safe-harbour tax of 15% on cost, aimed at offering clarity and reducing tax disputes.
The proposal allows foreign cloud providers serving global users to anchor their infrastructure in India and receive…

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