Taxation in India
Key Tax Incentives in India
Applicability: SEZ units operational before 1st April 2020
Incentive: Deduction of 100% of profits and gains derived from export business for first 5 years of commencement, 50% of profits and gains derived from export business for next 5 years, 50% of ploughed-back profits and gains from export business for next 5 years.
Applicability: Companies in respect of any expenditure on R&D in an approved in-house facility
Incentive: Weighted tax deduction of 200% granted to companies
Validity: 31st March 2020
Incentive: To incentivise investment in certain sectors, any capital expenditure incurred for specified businesses is allowed as a deduction in the year in which it is incurred.
Incentive: Tax incentives granted to eligible start-ups are the tax holiday for any consecutive 3 years (from initial 5 years) in respect to 100% of their profits, including fast-tracking of patent applications with 80% rebate.
Applicability: Caters to customers outside the jurisdiction of the domestic economy. Such centres deal with flows of finance, financial products and services across borders.
Incentives: Tax concessions on capital gains, Minimum Alternate Tax and Divident Distribution Tax