Union Budget 2026: FM Sitharaman Announces Tax Holiday for Foreign Cloud Firms
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Firstpost•01-02-2026, 12:23
Union Budget 2026: FM Sitharaman Announces Tax Holiday for Foreign Cloud Firms
- •Finance Minister Nirmala Sitharaman announced a tax holiday until 2047 for foreign cloud service providers.
- •This incentive applies if services are routed through an Indian reseller entity, aiming to attract global tech players.
- •The measure seeks to deepen India’s digital infrastructure, encourage foreign investment, and strengthen the domestic cloud ecosystem.
- •Significant relief for the IT sector includes clubbing IT services, ITES, and contract R&D under a single safe harbour regime at 15.5%.
- •The Safe Harbour eligibility threshold for IT services was raised from ₹300 crore to ₹2,000 crore, expanding simplified tax norms.
Why It Matters: FM Sitharaman offers tax holiday and IT sector relief to boost India's digital economy and global tech hub status.
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