07 February, 2026

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.

Reach out to us to know more

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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 mea...