New Delhi : Government on Monday said tax benefits will be available to only those SEZ units, which will commence commercial activity before March 31, 2020. The move is aimed at prompting such units to expeditiously complete their projects and begin operations.
The proposal forms part of the overall exercise to reduce exemptions and move towards a lower corporate tax regime. “The benefit of section 10AA to new SEZ units will be available to those units which commence activity before 31.3.2020,” Finance Minister Arun Jaitley said in his Budget speech.
In the last year’s Budget, the minister had mooted the proposal to reduce the rate of corporate tax from 30 per cent to 25 per cent over a period, accompanied by rationalisation and removal of various tax exemptions and incentives. “A phasing out plan of removing these exemptions and tax incentives was placed in public domain and we have received a large number of constructive suggestions,” he said. He said the accelerated depreciation provided under Income Tax Act will be limited to maximum 40 per cent from April 1, 2017. He also said the benefit of deductions for research would be limited to 150 per cent from April 1, 2017 and 100 per cent from April 1, 2020. “The weighted deduction under section 35CCD for skill development will continue up to 1.4.2020,” he added.−PTI
