BENGALURU, Feb. 1 -- The Centre has proposed ending a long-standing tax uncertainty for Indian units of overseas tech services firms and global capability centres (GCCs) by setting a uniform profit margin for taxing their IT services in the country.

In the Union Budget for 2026-27 presented on Sunday, finance minister Nirmala Sitharaman said a fixed tax will apply to IT services companies getting a minimum profit margin of 15.5%, replacing the various categories that attracted different tax treatment and often triggered disputes.

The change is aimed at providing certainty to companies running back-end and technology operations in the country and encouraging further investment.

"India is a global leader in software development services,...