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News Misc. - Direct Tax

  • Oct 25, 2019
  • Commerce Ministry considers 5-year extension of income tax benefits for SEZ units

    With exports and investments on the slide, the Centre is considering a five-year extension of tax benefits for units in Special Economic Zones (SEZs) by extending the sunset clause beyond March 31, 2020 to boost investor sentiment. “There is a feeling in the Commerce Ministry that an extension of SEZ tax benefits could be critical in kick-starting the investment cycle. A five-year possible extension is being discussed with stakeholders, including the industry and government,” a government official told BusinessLine. Removing Minimum Alternate Tax (MAT) on the export turnover of SEZs is also being considered, the official added. According to the sunset clause, the 100 per cent income tax exemption on export income for SEZ units under Section 10AA of the Income Tax Act for the first five years, 50 per cent for next five years and 50 per cent of the ploughed back export profit for subsequent five years, will expire on March 31, 2020.