Incentivise corporates to invest in education: Deloitte

The government should announce measures to accelerate employment generation, incentivising corporates to invest in education and skilling the workforce, especially in the IT – ITES sectors in the Budget 2019-20.

“Section 80-JJAA benefits may be extended to a larger section of employers such as professionals to encourage employment. The weighted deduction under section 35CCD for skill development projects may be revamped,” experts from Deloitte India said.

For SEZ, the income tax holiday sunset on March 31, 2020 and duty reliefs could be revisited, to accelerate growth of IT exports, as new age tech such as AI takes centre stage, said Hemant Joshi and Tapati Ghose, Partners, Deloitte India said.

The scope of safe harbor transactions was increased in 2017 to provide certainty to taxpayers. Suitable amendments to include distribution of content by an Indian company under the safe harbor regime will help the fast-growing media and entertainment sector. Similarly, extending Section 72A benefits to the Broadcasting sector, which allows industrial undertakings to carry forward tax losses in case of mergers or amalgamation, will help the sector, they said.

For a fast track 5G adoption, the government may introduce an investment allowance/ weighted deduction not only for spectrum but also for the capital spend. 5G related R&D may be given additional relief, they added.