MUMBAI: The Department of Telecom, in a budget proposal, asked government investment-linked tax incentives for the telecom sector under Section 35AD of Income Tax Act.
In its Budget recommendations, the Department has said that capital investments made for manufacturing of telecom equipment and by telecom infrastructure providers should be given incentives under Section 35AD of Income Tax Act.
Under this clause, investment-linked tax incentive is provided by way of allowing 100 per cent deduction in respect of the whole of any expenditure of capital nature incurred. The Act has specified the businesses that can avail themselves of the benefit, including setting up and operating a cold chain facility, setting up and operating a warehousing facility for storage of agricultural produce and building and operating, anywhere in India, a new hospital with at least one hundred beds for patients.
DoT has argued that extending the tax benefits to telecom sector will increase rural penetration and promote goals of ‘Make in India’.
