New Delhi, Feb. 4 -- Data centre tax holiday announced in Budget 2026-27, is a measure aimed at providing long-term tax certainty to global cloud service providers while ensuring that domestic economic activity in India remains fully taxable, a Finance Ministry source clarified on Wednesday.
According to the sources, the exemption applies to foreign companies that provide cloud services globally, including in India, and procure data centre services from India. "Budget 2026 provides an exemption to a foreign company which provides cloud services globally, including in India," a senior finance ministry source said.
The exemption will be available for a 21-year period, starting from the tax year 2026-27 and running up to tax year 2046-47, th...