TAX HOLIDAY FOR AI Data Centres

The Government has introduced a long-term tax incentive to make India a global hub for AI and cloud data centres.

👉 What does this mean?

• Foreign cloud companies using Indian data centres to serve global customers will get a tax holiday until
2047.

• Services for Indian customers must be routed through an Indian entity.

• A fixed profit margin rule reduces tax disputes for related companies.

✅ Why should an ordinary taxpayer care?

• More global investment coming into India

• Stronger digital infrastructure

• Job creation and technology growth

• Improved availability of cloud and AI services

This move positions India as a long-term digital infrastructure destination.

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