The Budget proposal of a 20-year tax holiday to foreign companies which provide cloud services globally will be available only to those which have set up a MeitY-notified data centre in India, and there will not be any risk for such overseas firms of their global income being taxed in India on this account, sources said on Wednesday.
Finance Ministry sources also said that the Budget announcement would also give certainty to foreign companies that are in the business of providing cloud services and procurement services from a data centre in India.
“Now Indian data centres can confidently offer their services to such global cloud entities, without these global entities perceiving any tax risk if they use Indian data centres,” sources added.
Finance Minister Nirmala Sitharaman, in her 2026-27 Budget, had proposed to provide a tax holiday till 2047 to any foreign company that provides cloud services to customers globally by using data centre services from India. It will, however, need​The Budget proposal of a 20-year tax holiday to foreign companies which provide cloud services globally will be available only to those which have set up a MeitY-notified data centre in India, and there will not be any risk for such overseas firms of their global income being taxed in India on this account, sources said on Wednesday.
Finance Ministry sources also said that the Budget announcement would also give certainty to foreign companies that are in the business of providing cloud services and procurement services from a data centre in India.
“Now Indian data centres can confidently offer their services to such global cloud entities, without these global entities perceiving any tax risk if they use Indian data centres,” sources added.
Finance Minister Nirmala Sitharaman, in her 2026-27 Budget, had proposed to provide a tax holiday till 2047 to any foreign company that provides cloud services to customers globally by using data centre services from India. It will, however, need ​Latest News [ SOBAN NEWS: International and National ]
