STPI Scheme

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Subrahmanyam

Subrahmanyam (Querist)
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20 October 2010 When does the STPI scheme expire - 31 march 2011 or 2012..Pl confirm..

CA Shailesh Kumar Bhagat

CA Shailesh Kumar Bhagat (Expert)
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20 October 2010 Up to 31.03.2011

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Subrahmanyam

Subrahmanyam (Querist)
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21 October 2010 Is this not extended beyond 2011

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
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25 July 2025 Your question pertains to the **validity of the STPI tax exemption scheme** under Section 10A of the Income Tax Act.

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### ✅ **Clarification on STPI Scheme Expiry**

The **STPI tax holiday/exemption** under **Section 10A** of the Income Tax Act:

* Was **initially applicable to STPI units** engaged in exporting software and IT-enabled services.
* It provided a **100% income tax exemption** on export profits for a certain number of years.

### 📅 **Expiry Date:**

* The tax holiday **officially expired on 31st March 2011**.
* This means **Assessment Year 2011–12 was the last year** to claim the 10A benefit.
* It **was not extended** beyond 31 March 2011.

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### 📝 Follow-up History:

* There was industry lobbying for extension, but the government, in its policy decision, **did not extend the STPI 10A benefit**.
* Instead, focus shifted to **Special Economic Zones (SEZs)** under Section 10AA, which continued to offer tax holidays for new units set up in SEZs.

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### ✅ Summary:

| Detail | Answer |
| ----------------------------- | ----------------------------------------------------------------------------------------- |
| Last date of STPI tax holiday | **31 March 2011** |
| Applicable Assessment Year | **2011–12** |
| Was it extended beyond 2011? | **No** |
| Any alternatives post-2011? | Yes, **SEZ Scheme under Section 10AA**, and **Startup tax benefits under Section 80-IAC** |

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Let me know if you want help comparing **STPI vs SEZ** benefits, or evaluating current tax-saving options for an IT export business.

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