India, Feb. 2 -- Finance Minister Nirmala Sitharaman on Sunday proposed to club various inter-connected sub-segments of IT, including software development services, IT-enabled services, knowledge process outsourcing services and others, under a single category with a common safe harbour margin of just 15.5 per cent, a move aimed at boosting India's attractiveness to tech giants across Europe and the US.

The proposal, alongside other sweeteners, unveiled in the Union Budget - upping the threshold for IT services safe harbour to Rs 2,000 crore from Rs 300 crore, and dishing out tax holiday for cloud providers leveraging India's data centre services - seeks to woo global investments while ensuring tax certainty and alignment with internatio...