Union Budget 2026-27 Announces Key Tax Exemptions to Boost Foreign Investment

The Government of India, through its Union Budget 2026-27, has announced several tax incentives aimed at increasing foreign investment and nurturing infrastructure growth in the country. In a notable move, a tax holiday extending until 2047 is proposed for foreign companies providing cloud services using India-based data centres. Additional perks include a 15% safe harbour on costs for related entities, exemptions from income taxes for non-residents supplying equipment to toll manufacturers, and exclusion from Minimum Alternate Tax for non-residents on a presumptive tax basis.

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