See Full Document Text
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE
LOK SABHA
UNSTARRED QUESTION NO. 3851
TO BE ANSWERED ON MONDAY, MARCH 16, 2026/ PHALGUNA 25, 1947 (SAKA)
TAX REBATE TO GLOBAL INVESTORS
3851. SHRI ADHIKARI SOUMENDU:
Will the Minister of FINANCE be pleased to state:
(a) whether the present Tax Act encourage Foreign Companies providing Global Cloud
Services using Indian Data Centres as Permanent Establishment, if so, the details thereof;
(b) the details of Foreign Companies investing under the notified Data Centres and the names
of such centres thereof, State-wise; and
(c) the details of Tax Rebate to Global Investors and Income of Government through Income
Tax, if any therein?
ANSWER
THE MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI PANKAJ CHAUDHARY)
(a) & (b) With a view to facilitate establishment of data centres in the country and strengthen
digital infrastructure, following measures have been announced in the Union Budget 2026-27:
“To provide tax holiday till 2047 to any foreign company that provides cloud services
to customers globally by using data centre services from India.”
Such exemption shall be available to a foreign company on any income accruing or arising in
India or deemed to accrue or arise in India by way of procuring data centre services from a
specified data centre.
(c) Exempt Income claimed by FII/FPI reporting residential status as ‘Non-Resident’ along with
the total taxes paid as per ITR-5 is provided below –
Assessment Total number Schedule EI: Total Exempt Part B TTI: Taxes Paid - Total
Year of ITRs Income (in Rs. crores) Taxes Paid (in Rs. crores)
2024-25 4,106 90658.62 37386.38
******