New Tax Laws Amendment Bill Clears Path For Simpler Data Centre Incentive Regime

The Taxation and Other Laws (Amendment) Bill, 2026, simplifies India's data centre tax incentive to make it easier for foreign cloud companies to invest

Industry says the changes improve tax certainty and reduce compliance burdens, making India a more attractive destination for global cloud, AI and data centre investments while supporting modern operating models

Experts caution tax reforms alone won't drive investment, with power availability, fibre connectivity, infrastructure readiness and the yet-to-be-notified compliance framework remaining critical factors

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