The government has proposed a tax holiday for data centres and cloud service providers for the next 20 years to boost investments from the Big Tech and data centre companies. “Recognising the need to boost critical infrastructure and boost investment in data centres, I propose to provide tax holiday till 2047 to any foreign company that provides cloud services to customers globally by using data centres from India. It will, however, need to provide services to Indian customers through an Indian reseller entity,” Finance Minister Nirmala Sitharaman said on Sunday. During the Union Budget 2026 presentation, the Minister also proposed providing a safe harbour of 15% on cost, in case the company providing data centre services in India is a related entity.A tax holiday means exemption from a certain type of tax for a period of time, which may include corporate taxes, income taxes, or specific profit-sharing charges. While the details of the nature of relief will emerge in the coming days, the announcement has come close on the heels of the industry seeking clarity on tax and regulatory uncertainties.It is important to note that Big Tech firms Microsoft, Google, and Amazon have announced investments worth $70 billion in India in the last… Read MoreYourStory RSS Feed
