Press Trust of India / New Delhi Jun 10, 2009, 15:13 IST
Telecom and IT Minister A Raja today met Prime Minister Manmohan Singh to pitch for the extension of tax sops enjoyed by the IT firms for another three years.
Under the Software Technology Park Scheme (STPI), the IT units enjoy tax benefits under sections 10 A and 10 B.
Raja also requested the Prime Minister to form an IT task force with representation from the IT industry and eminent personalities, who would help the government in forming policies.
The task force is likely to give impetus to the growing sector and help the government bring in more investment into the country, sources said.
Raja had earlier indicated that he would take up the issue with Finance Minister Pranab Mukherjee before the presentation of Budget 2009-10.
If the STPI scheme is extended for another three years it will give the domestic IT firms a shot in arm, who were hit by the global recession.
STPI scheme should be extended for three years with a condition that every company will be levied income-tax at the rate of 5%, 10% and 15% for the year ending 31.3.2010, 31.3.2011 and 31.3.2012 respectively. This is essential in view of the Hon'ble PM's observation that India needs resource mobilisation for spendings on education, health, housing, constructon of roads etc. but "money does not grow on trees". Every rupee as tax counts.
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