Union Budget 2026-27: IT, startup sectors get big tax breaks
Business
The 2026-27 Union Budget just dropped some big updates for the IT world.
Safe harbor rules got a makeover—now, software development, IT-enabled services, KPO, and contract R&D are all grouped together with a flat 15.5% margin and a ₹2,000 crore threshold.
Buyback profits and foreign cloud providers' tax holidays
If you're eyeing a career in tech or startups, these changes could mean smoother tax compliance and less paperwork for mid-sized companies.
Buyback profits now have clear tax rates (22% for corporate promoters; 30% for non-corporates), which might boost shareholder payouts.
Plus, foreign cloud providers get tax holidays till 2047 to build data centers here—so expect more jobs and better tech infrastructure from giants like TCS and Adani.