Budget gives boost to IT, telecom

The Union Budget for 2003-04 proposed to sustain and encourage growth in information technology and telecom sectors.

In a boost to information technology and telecom sectors, the Union Budget for 2003-04 proposed to sustain and encourage the momentum of growth achieved in both the sectors.

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Presenting the Budget in Parliament, Finance Minister, Jaswant Singh said concessions given to IT under Section 10A and 10B of the Income Tax Act will be continued, even in the case of amalgamation or de-merger.

The value of pre-loaded software has been excluded for the purpose of charging excise duty on computers.

In addition, customs duty on a number of capital goods used by the telecom and IT sector for manufacture of components will be reduced from 25 per cent to 20 per cent.

To enable the domestic industry manufacture e-glass roving used for making optical fibres, the provisions propose to reduce the import duty on specified raw materials for the manufacture of e-glass roving from 30 per cent to 15 per cent.

The tax holiday enjoyed by telecom and domestic satellite service companies has been extended by one more year till March 31, 2004.