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Friday, October 7, 2011

India to mull tax sops for IT firms

NEW DELHI (Reuters) - India will consider giving tax sops for information technology companies after the direct tax bill comes into affect, Telecoms and Information Technology minister Kapil Sibal said on Friday.

India is trying to pass a bill in parliament to overhaul its archaic direct tax laws, a key reform aimed at simplifying procedures for investors and bring in more revenue by widening the tax net.

"We will certainly try and do something," Sibal told reporters without giving details.

A spurt in tax rates due to expiry of the Software Technology Parks of India (STPI) scheme earlier this year has hurt margins and crimped profits at Indian IT firms.

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