RESEARCH, IT & ITES TO ATTRACT TAX SOPS

Research and development, IT and ITES would now qualify for inclusion in the industrial parks scheme. The Central Board of Direct Taxes notified the amendments that the Industrial parks are eligible for a 10-year income-tax holiday under sub-section (4) of Section 80 IA of the Income Tax Act, 1961. According to the amendment scheme, the ambit of industrial activity has been expanded to include research and experimental development on natural sciences and engineering, development of computer software and information technology enabled services. The minimum constructed floor area has been reduced to 15,000 sq.m from the earlier 50,000 sq.m. The CBDT had notified the original scheme on January 8.