TAX HOLIDAY FOR AI Data Centres

By


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.

Reach out to us to know more

Location: Rajajinagar, Bengaluru, Karnataka, India

Comments

Post a Comment

Most Read This Month

Govt Acquired Your Agricultural Land? Is that 100% Tax-Free?

By
Image
⚡ Quick answer Section 10(37) (Income-tax Act, 1961) fully exempts capital gains of an individual or HUF when urban agricultural land is compulsorily acquired . In the Income-tax Act, 2025 (from 1 April 2026), the same exemption sits in Section 11 read with Schedule III . From tax year 2026-27, Schedule III also exempts income from an award or agreement under the RFCTLARR Act, 2013 (except Section 46 deals) for individuals and HUFs, for agricultural and non-agricultural land. Rural agricultural land is not a capital asset at all, so there is no capital gains tax on it. 👀 Eye-opener: "Government land = tax-free" is only half true The exemption depends on who owns the land, how it was used and which law was used to acquire it. Miss one condition and a ₹1.25 crore award can attract about ₹15.7 lakh of tax (example below). Hidden risk: land left fallow, or used for a non-farm purpose, in the 2 years before acquisition can lose the 10(37) exemption....
Read more

5 Changes Most Salaried Staff Miss Before Payroll Cut-Off :Is Your Payroll Still Using 40% HRA? 8 Cities Now Get 50% - Form 124

By
Image
⚡ Quick answer: Form 124 (old Form 12BB) for Tax Year 2026-27 Form 12BB is now Form 124 (Rule 205, Income-tax Rules 2026, under section 392 of the Income-tax Act 2025). You give it to your employer , not the tax portal, so HRA, LTA, home-loan interest and investments reduce your salary TDS. New: landlord PAN if rent is over ₹1 lakh a year plus your relationship with the landlord . HRA at 50% of salary now covers 8 cities: Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune, Ahmedabad (old regime). No fixed legal date: your employer's proof cut-off (often Dec–Feb) is your real deadline. 👀 Eye-opener: miss the cut-off, pay now, wait for refund If you don't submit Form 124, your employer must deduct TDS without your deductions. The extra tax is usually recovered from your January–March salaries . You can still claim in your ITR, but your money stays locked until the refund comes. Hidden risk: paying rent to a parent or spouse? The form now asks...
Read more

TDS Return Due Date 31 Oct 2026 (Q2): Form 138 & 140

By
Image
⚡ Quick answer: Q2 TDS return due date Due date: 31 October 2026 for the July–September 2026 quarter (Tax Year 2026-27). New forms: Form 138 (salary, old 24Q), Form 140 (other resident payments, old 26Q), Form 144 (non-residents, old 27Q), Form 143 (TCS, old 27EQ). Late fee: ₹200 per day (section 427), capped at the TDS in the statement. Form 131 (old Form 16A) to deductees by 15 November 2026 . 👀 Eye-opener: the 1-month trap Many deductors still think “late is fine, just pay ₹200 a day”. Not any more. Penalty window shrank: the no-penalty cushion is now one month from the due date (it was one year until March 2025). Miss it and a penalty of ₹10,000 to ₹1,00,000 can apply (section 461). Hidden cost: your vendors and staff see no TDS credit in Form 26AS/AIS until you file. Expect calls, held payments and strained relationships. Weekend alert: 31 October 2026 is a Saturday . Don't leave it to the last evening. 💰 Saver tip: Fix PAN mismatches befor...
Read more