India, Aug. 4 -- India's data centre tax incentive announced earlier this year sought to answer an important concern for global cloud companies on whether using infrastructure located in India expose a wider share of their international income to Indian taxation?

The Finance Act, 2026 addressed that concern by providing eligible foreign companies procuring data centre services in India with a tax exemption extending to March 31, 2047. The framework, however, required government notifications covering eligible foreign companies and specified data centres, creating an additional approval layer before the incentive could be used.

The Taxation and Other Laws (Amendment) Bill, 2026 now proposes simplifying that mechanism. Introduced in the L...