Current Affairs · Global Hub Tax Incentives
The Union Budget 2026-27 proposed a structured framework of tax incentives and safe harbour rules to attract global investment and position India as a global business hub. Which of the following combinations correctly reflects the specific tax holiday duration for cloud service providers, the safe harbour margin for related entities in the data center sector, and the profit margin for non-residents utilizing bonded warehouses for component storage?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Tax holiday until 2047; 15.5% safe harbour margin on cost; 1% profit margin for component warehousing
- 2Tax holiday until 2047; 15% safe harbour margin on cost; 2% profit margin for component warehousing✓
- 3Tax holiday until 2040; 12.5% safe harbour margin on cost; 3% profit margin for component warehousing
- 4Tax holiday until 2035; 10% safe harbour margin on cost; 5% profit margin for component warehousing
Correct answer
Tax holiday until 2047; 15% safe harbour margin on cost; 2% profit margin for component warehousing
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