Safe harbour margin set at 15.5% for IT services, threshold hiked

Finance Minister Nirmala Sitharaman proposed a common safe harbour margin of 15.5% for IT services in the Budget. The threshold for availing safe harbour for IT services has also been enhanced from ₹300 crore to ₹2,000 crore. Once applied by an IT services firm, the same safe harbour can be continued for 5 years at a stretch at its choice.