DTC: SEZ: Exemption on Profits for unit holders

Hi,


I have read the latest statements by Hon. FM about SEZ under DTC.

Only *investments* made in SEZ by developers and units holder will be exempted from Income Tax.
Profits will be taxed.

Do I understand this correct ? It will be  a big blow to small IT companies.
The purpose of SEZ / STPI (which will close on 31st March 2011) will be defeated.

Pls advice.

Thx
Sanjay

Replies (2)

Industry has already approached the ministry to review the proposal regarding SEZ, because it had attracted many thousand crores of investments... Ministry cannot remove the benefit straight away...

 

But what the ministry is considering now is to replace profit based incentive with the investment based incentive... which if i understand correctly.. the profits earned till the amount invested will be exempted and the amount excessing the investement will be taxed...

 

If that is the case, ur view is correct (big blow to small IT companies)

hmm.. Experts, please share your views on what is "investment based incentive".

Does it mean the amount invested will be 100% tax exempted.

or as Pavan mentioned "the profits earned till the amount invested will be exempted".

Thank you.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 12 September 2026
Assistant Manager - Finance & Compliance

Naveen Fintech Pvt Ltd

Kolkata

CA Inter

View Details
Company
05 October 2026
Senior Accountant

Vision IT Peripherals Pvt Ltd

Mumbai

B.Com

View Details
Company
ARTICLESHIP 16 September 2026
CA Article Trainee

SR BAGAI & Co.

New Delhi

CA Inter

View Details
Company
30 September 2026
Senior Accounts Executive

Codeboard Technology

Chennai

MBA

View Details
Company
09 September 2026
Semi Qualified CA / CA Inter - 2 Groups Cleared

Getmyca Consultant Pvt Ltd

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 07 October 2026
Article assistant

S.K.Bajpai & Co.

Noida

B.Com

View Details
Company
20 September 2026
Semi Qualified CA

Navin & Associates

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 16 September 2026
Article Assistant

MANUJ SHARMA AND COMPANY

Noida

CA Inter

View Details