« Top Headlines » Open DEMAT Account in 24 hrs  Old or new tax regime for TDS on salary? This post-election 2024 event will impact your tax planning  What Are 5 Heads Of Income Tax?  Income Tax Dept releases interim action plan for FY25 on tax collection, refund approvals   Income Tax Return: 5 lesser-known tax-saving tips from Section 80  Income Tax Return: 5 lesser-known tax-saving tips from Section 80  Why you need not rush to file your ITR immediately  Income tax returns: ITR-1, ITR-2, ITR-4 forms for FY 2023-24 available for e-filing  Section 80DDB tax benefits for specified illnesses: 5 things to know  Income tax slabs FY 2024-25: Five tips to help taxpayers decide between old and new income tax regimes  ITR-1, ITR-2, ITR-4 forms for FY 2023-24 (AY 2024-25) available now on e-filing income tax portal  How To Save Tax For Salary Above 15 Lakhs? «  I-T Dept asks CBDT to clarify non-compete fee... Effective tax rate burden rising for India Inc... » EoU tax break extension unlikely February, 25th 2008 Finance ministry opposed to exemptions in principle: Official.   The 10-year income-tax holiday, which 100 per cent export-oriented units (EoUs) enjoy under Section 10B of the Income Tax Act, 1961, is unlikely to be extended beyond March 31, 2009, when these benefits are to expire.   This is despite a strong recommendation to continue EoU tax breaks by a committee set up by Prime Minister Manmohan Singh under V Krishnamurthy, chairman, National Manufacturing Competitiveness Council.   The finance ministry is not in favour of extending tax breaks as a matter of principle, so there is unlikely to be an announcement in the Budget, a finance ministry official said.   This effectively means that the benefit will automatically cease from April 1, 2009. A similar tax break under Section 10A of the I-T Act is available to Software Technology Parks of India (STPI).   A recent finance ministry-sponsored study by think tank Indian Council for Research on International Economic Relations had also recommended extending EoU tax breaks.   EoUs enjoy tax breaks for 10 years. The scheme came into force in 1981 and 2,300 units have come up since then. The finance ministry had imposed Minimum Alternative Tax on 100 per cent EoUs in last years Budget.   However, a proposal for EoU tax breaks by the commerce ministry is pending before the cabinet.   EoUs differ from special economic zones (SEZs) principally in the level and time-period of tax breaks to which they are entitled. SEZs get income-tax breaks for 15 years and no sunset clause has been stipulated yet. They are also exempt from sales tax and excise, among other local imposts.   The Export Promotion Council for EoUs and SEZs projects EoU exports to cross Rs 125,000 crore, roughly 19 per cent of total exports for the year, for 2007-08.   EoU exports have been increasing at 30 per cent in the last decade and at over 31 per cent in the past five years, said L B Singhal, director-general of the council.