Policy for integrated townships for IT, BPOs in offing
The government is preparing a policy that will extend tax sops to developers similar to those enjoyed by promoters of SEZs.Updated: Jun 17, 2007 17:18 IST
The government is preparing a policy for setting up integrated townships for booming IT and BPO sectors that will extend tax sops to developers similar to those enjoyed by promoters of special economic zones.
The Department of Information Technology is framing a policy for Information Technology Investment Regions. It has already started discussions with Finance Ministry on the tax benefits that could be given for developing and operating infrastructure facilities, official sources said.
Finance Ministry has agreed to give 100 per cent income tax exemption on profits for 10 years to providers of these facilities. But it has made it clear that unlike SEZs, no tax exemptions would be given to co-developers, the sources said.
The finance ministry has also said that apart from the concessions already available under the Income Tax Act for infrastructure development "there is no case for providing additional tax sops".
Even in the case of Petroleum, Chemical and Petrochemical Investment Regions (PCPIRs), the government has only exempted developers and infrastructure providers from income tax.
The stand taken by Department of Revenue would ensure that units coming up in these proposed IT Investment Regions submit taxes which establishments outside the zones also pay.
Apart from development, operations and maintenance of infrastructure facilities, even power generation would qualify for tax exemptions if the task is taken up by the developer.
But developers would have to take up power generation, transmission and distribution operations by March 2010.
Infrastructure facilities that would be exempted would include housing, roads, water supply, water treatment, waste management, port and airports, the sources added.