Direct Taxation for IT/ITES industry: 1. Extending Income Tax benefits under Section 10A /10B under STPI Scheme for an additional period 3 - 5 years, at least for SMEs 2. Possibility of moving the business from STPI to SEZ may be permitted (business of STPI which has not crossed 10 years of IT benefits ) 3. Income Tax and other benefits under STPI Scheme should be in line with companies gets registered under SEZ (Eg. MAT is applicable to STPI registered company and not applicable the companies registered under SEZ) 4. Dividend Distribution tax on Dividend amounts to double taxation and therefore, Dividend Distribution tax could be removed in the current budget. At least, Dividend Distribution tax should not be charged for the persons whose total income is less than the exemption amount. 5. Tax benefits available to Mutual fund should continue to be retained. 6. Budget of 2010 should give broad guiding path for the implementation of Direct Tax code. 7. Considering the fact that Housing sector plays a vital role in the GDP of the country, interest on housing loan could be enhanced from Rs. 1.50 lacs to 2.50 lacs per annum 8. Peak rate of 30% of salaried employees should be reduced to 25% and thereby purchasing power of the individual will go up and indirectly stimulate the economy of the country.
Mr. Sriram Subramanya, Founder, Managing Director & CEO of Integra Software Services
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