EXEMPTION FROM MINIMUM ALTERNATE TAX (MAT) TO ALL NON-RESIDENTS WHO PAY TAX ON PRESUMPTIVE BASIS

• Union Budget 2026-27 proposal to exempt all non-residents taxed on a presumptive basis from Minimum Alternate Tax (MAT) under the Income-tax Act, 1961.
• Bundled with a tax holiday till 2047 for foreign cloud-service companies using Indian data centres and a 15% cost-plus safe harbour for related-entity Indian data centre providers.
• Aspirant relevance: GS-III (taxation, investment climate, digital infrastructure); a likely Prelims hook on Section 115JB carve-outs and presumptive sections 44B/44BB/44BBA/44BBB.