'Imperative that govt revives front-end tax incentives'

Imperative that govt revives front-end tax incentives, says Sumanta Panigarhi

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By Sumanta Panigarhi

The Information Technology (IT) industry is currently going through a transition phase, as numerous new technologies in the form of Artificial Intelligence (AI), Cognitive Computing, Data Science, Machine Learning (ML), Big Data, Data Analytics, Robotics (RPA), Internet of Things (IoT), Blockchain, etc. are changing the rules of the game for incumbent IT players. Given the relevance of the new-age technology business, it is imperative that the Government revives `front-end' tax incentives such as Section 35 (2AB) for at least 5 more years and include IT/ IT-enabled Services as an eligible business for this added benefit. Sec 35CCD may be overhauled to promote expenditure on skill development training and revive incentives on re-skilling and up-skilling the IT workforce. The Government should also consider revitalizing tax holiday under Section 80-IB (8A) for companies that dedicate themselves to research and development in the niche technology services sector.

(The writer is the Chief Financial Officer (CFO) of JK Technosoft Ltd)