InvestorQ : Is Indian Ministry planning to provide tax holiday?
nishi Shah made post

Is Indian Ministry planning to provide tax holiday?

Answer
user profile image
preetam lenka answered.
4 months ago


India’s trade ministry is proposing a tax holiday for companies bringing new investments as the government explores measures to support the economy amid the coronavirus pandemic, according to people familiar with the matter.

The proposal to give a 10-year full tax exemption to companies making new investment upwards of $500 million is being evaluated by the finance ministry, said the people, who asked not to be identified citing rules. The plan requires companies to start operations within three years from June 1, and will cover sectors including medical devices, electronics, telecom equipment and capital goods, they said.

Another variant of the program will be to provide a four-year tax holiday to companies that invest $100 million or more in labor-intensive sectors such as textiles, food processing, leather, and footwear. A lower corporate tax rate of 10% is proposed for the next six years, the people said. The proposal has to be approved by the finance ministry and, so far, it hasn’t taken a decision.


user profile image
Anusha Savla answered.
4 months ago


Yes, recently it has been in the news that Indian ministry is planning to provide a tax holiday for the companies that will bring a new investment of more than $500 million in the country. The government is planning to do so to explore the measures that could support the Indian economy during the coronavirus pandemic. The proposal states that such companies shall be given a ten-year full tax exemption.

According to the plan, the companies shall start operations within three years from June 1, and will cover sectors dealing in the medical devices, telecom equipment, capital goods, and electronics.

There’s another variant to this proposal which states that the companies that invest $100 million or more in labor-centered sectors such as food processing, textiles, footwear, and leather, etc. shall be provided tax holiday of four years.