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Is the Latest Union Budget a Good or Bad News for Indian IT Industry?

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Although, 2010-11 Union Budget has brought some good news for the construction, hospitality, banking, education and pharma sectors, but, it does not generate any good news for IT industry. The Finance minister didn't mention anything about the extension of Tax Rebate in this budget for IT industries.


Since, the tax break ends in Mar 2011, outsourcing major such as Infosys Technologies, Tata Consultancy Services and Wipro are going to lose from the Budget because there is no mention of Tax Rebate in the budget. But, the Infosys chief Mr. Murthy has a different view. In an interview before the budget, he said that IT industry is quite different from other industries. IT companies need to pay higher taxes. That's why STPI (Software technology Park of India) extension is not required.

The Finance Minister further said that since, the industries have witnessed economic upturn from the last quarter, the government increased its factory gate taxes. He also commented that the economy will grow at 8.5 per cent till March 2011. That's why the Budget for 2010-11 gave a correct indication towards fiscal consolidation.
However, IT industries will benefit from some of the proposals like allocation of Rs 1900 crore for UID (Unique Identity) project and the announcement of the modernization of national employment exchanges.

source : http://blog.taragana.com/index.php/archive/is-the-latest-union-budget-a-good-or-bad-news-for-indian-it-industry/
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