Information Technology Sector : Budget Spotlight

Information Technology Sector : Budget Spotlight

What to expect for the IT Sector

• Last year’s budget was not kind to the IT sector. The 2011-12 budget had imposed Minimum Alternate Tax (MAT) on Special Economic Zones (SEZ) units while not extending the tax benefits under the STPI scheme. This had a negative sentimental impact • For the upcoming budget, the industry has recommended that the Finance Minister rolls back the MAT burden on the SEZ s and also provide IT exemption to units based on their size (SMEs) and area of operation (Tier 2 and tier 3 cities)

Spotlight: IT Sector by Dipen Shah – Head, Fundamental Research

• Due to the pressing concerns on the revenues front, we believe that the Finance Minister may not accept these recommendations • So we expect a neutral budget for the sector on the whole • We maintain our positive view on the sector with a medium-to-long term perspective 

Expectations for the IT sector : Budget 2012-13

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