FM brings IT services under single category in Union Budget: What this means for IT companies

Union Budget 2026 designates ‘Information Technology Services’ as a single category for IT companies, including software development, IT-enabled services, KPOs, and contract R&D. A uniform 15.5 per cent safe harbour margin will apply, with increased thresholds and automated approvals. A fast-track Unilateral APA process for IT services aims for conclusion within two years.