Tax on ESOP will have negative impact on IT industry: Infosys

Bangalore, Feb 28 (UNI) Levy of Fringe Benefit Tax (FBT) on Employee Stock Option Plan (ESOP) proposed the Union Budget today will impact the Information Technology industry in the country as it has been used as a retention tool, IT major Infosys said today.

''The tone of the budget presented by Finance Minister P Chidambaram is on the expected lines and positive to the country's economy in view of the high inflationary trends.

However, for the industry, it's negative,'' Infosys Chief Financial Officer V Balakrishnan told UNI here.

He welcomed the higher allocation to education and infrastructure and measures taken to give a fillip to agricultural production that may help cut price rise.

He said the Industry was also surprised on introduction of Minimum Alternate Tax, which would eat into the margins.

UNI