Describing the Union budget 2003-04 as IT friendly, Nasscom expressed happiness over government's decision to retain the full tax exemption to the industry as committed by it and originally envisaged.
"Overall, the budget is IT friendly and we are extremely pleased that the Government has restored its earlier commitment. The Government has taken a long-term approach to support the industry which has consistently contributed to the growth of the Indian economy", NASSCOM chairman Arun Kumar said in a statement.
Nasscom, India's apex industry association of IT software and service companies, welcomed the Government's move to amend the clause in Section 10A/10B of the Income Tax Act which was holding back acquisitions and mergers.
Kumar said the retention of full tax exemption under Section 10A/10B was a very positive step which would help continue the growth momentum of the Indian IT and ITES industry.
Nasscom President Kiran Karnik said the association was delighted that the Government had accepted its recommendations with regard to full exemption of taxes on export profits and also excluding de-mergers and amalgamations from the provisions of sections 10A/10B.
"This is very positive development and will help the Indian IT and ITES industry to further enhance their global competitiveness and spur creation of new enterprises", he added.