"IT Companies Can Avail Safe Harbour For 5 Years Continuously": Nirmala Sitharaman
Finance Minister Nirmala Sitharaman announced measures to strengthen India's IT sector as a key growth engine:
Unified IT services category: Software development, IT-enabled services, KPO, and contract R&D services will be clubbed under "Information Technology Services" with a common safe harbour margin of 15.5%.
Higher threshold for safe harbour: Threshold increased from ₹300 crore to ₹2,000 crore, making more companies eligible.
Automated approval: Safe harbour will be approved through a rule-driven automated process, removing the need for tax officer scrutiny.
