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| I-T exemptions for SEZs developed before March 31, 2012 |
| Press Trust of India / New Delhi Aug 30, 2010, 22:07 IST |
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The Special Economic Zones (SEZs), which are notified on or before March 31, 2012, will get income tax benefits, as per the proposed Direct Taxes Code (DTC) Bill.
The government today tabled the much-awaited DTC in the Lok Sabha.
"The SEZ developers will be allowed profit-linked deductions for all SEZs notified on or before March 31, 2012," Revenue Secretary Sunil Mitra told reporters here.
"Units in SEZs that commence commercial operations by March 31, 2014, shall similarly be allowed profit-linked deductions permitted under the Income Tax Act 1961," Mitra said.
The revised DTC, released on June 15, by the Finance Ministry, proposes to do away with the income tax benefits given to new units in SEZ.
The SEZs have attracted an investment of about Rs 1.5 lakh crore. Of the 578 approved SEZs, 111 are operational. A SEZ is considered operational if at least one unit in it has started exports.
Units in SEZs get 100 per cent income tax exemption on export income for the first five years and 50 per cent for the next five years. They also get exemption on 50 per cent of the ploughed back export profit for the next five years after the first 10 years. They are exempted from MAT as well.
The government also proposed that MAT will be levied on book profits and on all companies with MAT credit allowed to be carried forward for 15 years.
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