With policy certainty & AI push, Budget signals India’s tech moment, says Nasscom

Rationalisation of international taxation and transfer pricing framework, and the clear use of tax policy as a competitiveness lever stood out as a major positive for the technology industry in the Union Budget, apex industry body Nasscom said on Sunday.

The consolidation of software development services, IT-enabled services, KPO and contract R&D relating to software development into a single category of IT services with a uniform safe harbour margin of 15.5 per cent, alongside enhancement of the Safe Harbour eligibility threshold to Rs 2,000 crore (from Rs 300 crore), materially expands access to certainty mechanisms for routine cross-border IT service models, it said.