Sunday, January 24, 2021

With tax rate down, govt in no mood to extend tax holidays

- Advertisement -

GST Council gives more time to taxpayers to revive cancelled registrationNew Delhi, Nov 23 (IANS) The government seems to be in no mood to extend the sunset clauses of numerous tax holidays it extends to various sectors.

According to sources, at a recent meeting of officials, the revenue department has told the Department for Promotion of Industry and Internal Trade Investment (DPIIT) in no uncertain terms that tax holiday extended to start-ups would not be given any extension.

Under the tax holiday scheme extended to various sectors to help it stabilise operations, the government extends five-year tax exemption on profit and gains made by the sector. For start-ups, under Section 80 I A of income tax act, full deduction of tax on profit and gain is provided to entire set up between April 1, 2016 and March 31, 2021.

READ ALSO:  Auto sector applies brakes on new hiring, stares at downsizing

With the tax exemption regime coming to an end in four months time and Covid-19 pandemic impacting operations of entities, a proposal was given to extend this tax holiday for another five years till 2026.

Sources said that income tax rejected this proposal for extension of tax holiday as the general policy is to phase out exemptions while reducing the overall tax rate on corporates. Last year the government had reduced corporate tax rates to 15 per cent for new entities and 22 for others. With this, tax rates in India had already come to one of the lowest levels globally negating any need to extend exemption regime.

READ ALSO:  SC issues notice on plea over lack of 'Gram Nyayalayas'


India Updates
India Updates is an independent news & Information website. Follow us for regular updates on News and Information.

Related News


Please enter your comment!
Please enter your name here

Trending Topics In India

Covid 19 India Updates

Trending News In India

Trending Showbiz

Trending Sports

Latest Trending News In India

CAIT seeks action against Amazon, Zomato for ‘daylight robbery’

New Delhi, Jan 24 (IANS) The Confederation of All India Traders (CAIT) in a communication sent to Union Commerce Minister Piyush Goyal demanded immediate...

Textile body seeks customs duty hike on man-made yarns in Budget

New Delhi, Jan 24 (IANS) The Northern India Textile Mills' Association (NITMA) has urged the government to raise customs duty on man-made yarns to...

Farmers’ stir: Preparations on for Jan 26 tractor rally

New Delhi, Jan 24 (IANS) As the farmers' agitation at the Delhi borders entered the 60th day on Sunday, all eyes are on the...

First confirmed case of Covid in pet reported in South Korea

Seoul, Jan 24 (IANS) In the first case involving a pet, a kitten has tested positive for the Covid-19 in South Korea. The infected kitten...