With the IT/ITeS sector reeling under the impact of the coronavirus outbreak, industry body Nasscom has asked the government to extend the tax holiday to IT SEZs for the 2020-21 fiscal. The direct tax benefits under the sunset clause expired on March 31.
“The Covid-19 crisis has had global ramifications and even planned investments from entities based in India, the EU, the US, etc, will take some time to be operationalised. Hence, it is important to extend the scheme,” Nasscom said in response to a TOI query. The scheme for IT SEZs allows for 100% income tax exemption on export income for the first five years, 50% for the next five years, and 50% of the ploughed back export profit for the following five years.