Budget 2026 LIVE: Major IT Boost Announced by FM... ... Union Budget 2026 LIVE: Finance Minister Nirmala Sitharaman Ninth Budget Today All Updates

Budget 2026 LIVE: Major IT Boost Announced by FM Sitharaman

In the Union Budget 2026, the government proposed a significant tax incentive package for the IT sector. Finance Minister Nirmala Sitharaman announced a tax holiday until 2047 for foreign companies that set up data centres in India to serve global markets. In addition, a safe harbour margin of 15% on cost will be available for companies providing data services from India to related entities.

Key proposals include: • All IT services to be consolidated under a single category with a uniform safe harbour margin of 15.5%. • The eligibility threshold for availing safe harbour benefits for IT services to be raised from ₹300 crore to ₹2,000 crore. • Approval of safe harbour for IT services to be implemented through an automatic, rule-based mechanism.