5 year tax holiday for new hospitals, hotels

New Delhi, Feb 29: In the General Budget 2009-09, a five year tax holiday has been announced for setting up Hospitals anywhere in India, specially in tier-2 and tier-3 towns in order to serve the rural interland.

Certain specified urban agglomerations will not be covered. This window will be open for the period April 1, 2008 to March 31, 2013, during which the hospital must commence operations. For the purpose a new sub-section 11 C in Section 80-IB will be inserted. Similarly, a five year holiday from income tax has been announced for two, three and four star hotels established in specified districts which have UNESCO-declared 'World Heritage Sites'. The hotel should be constructed and start functioning during April 1, 2008 to March 31, 2013. The measure has been taken in view of significant rise in tourist arrivals, specially for cultural tourism.

UNI