Tax holiday for power projects extended by another year

The government has extended by another year the 10-year tax holiday for the power sector, Finance Minister Arun Jaitley announced on Thursday.

The government has extended by another year the 10-year tax holiday for the power sector, Finance Minister Arun Jaitley announced on Thursday.

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With this, the eligible date for projects in the power sector to avail the benefit under section 80-IA of the Income Tax Act stands extended from March 31, 2014 to March 31, 2015.

The law allows a power producer to claim tax exemption for up to 10 years within the first 15 years of a project's operations.

The government last year extended the scheme, which primarily benefits independent power producers plagued by issues like fuel supply shortages, until March 2014.