For Quick Alerts
For Daily Alerts

Govt may withdraw tax benefits available to infra sector

By Religare

Companies engaged in infrastructure sector and enjoying tax holiday for 10-20 years in a row under Section 80-IA may soon end up losing such profit-based incentives as finance ministry plans to replace them investment-based incentives, said a media report.

The government had, in the previous fiscal, lost around Rs 15,000 crore in revenues due to various profit-linked incentives provided to infrastructure companies under section 80-IA. This amount also translated into 19 per cent of the total of Rs 79,173 crore that could not come to the government's pocket due to various profit-linked incentives given to India Inc.


FinMin officials also said that companies were misusing profit-linked incentives to make undue gains. Assessing officers felt that companies sometimes earn more than ordinary gains by selling to related parties at a higher price than that charged from unrelated parties and by diverting profits from the taxed segment to the exempt segment.

The move comes at a time when government has been trying to rein in its fiscal deficit and boost investments in the economy.

Read more about: union budget 2013
Company Search
We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more