Tax break for IT companies

With the Software Technology Park Of India (STPI) Scheme likely to be phased out next year, the government could extend tax holidays to IT companies under the industrial park scheme. It offers a 10-year income tax holiday to developers who set up industrial parks between April 1, 2006 and March 31, 2009. The industrial park developers are eligible for 100 per cent tax deduction. The minimum area stipulation under the scheme will be revised to accommodate IT companies. It’s likely to be reduced to 14, 000 sq. mt from the earlier limit of 50,000 sq mt. This new policy initiative is reportedly at the behest of the Prime Minister’s Office.

— Rishi Joshi