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Coronavirus lockdown: Govt may extend tax holiday, incentives for SEZs

Sunset clause under India's SEZ policy that provides generous tax benefits to SEZ units & developers, ends on March 31

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Subhayan Chakraborty Neha Alawadhi New Delhi

4 min read Last Updated : Mar 30 2020 | 8:50 PM IST

Bogged down with the current coronavirus outbreak, the government is likely to extend tax-holiday and other incentives to Special Economic Zones (SEZs) under it's Sunset Clause policy, the window for which ends on March 31.

After endless rounds of talks on the issue, domestic industry had accepted the end of the sunset clause but the government may allow the tax-free window to remain operational for some time to help companies battle the downturn emerging from the latest global pandemic.

The clause promises 100 per cent Income Tax exemption on export income for SEZ units under Section 10AA of the Income

Topics : Coronavirus Special economic zone Tax holiday tax incentive

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