Tax holiday to software companies hailed

Chennai, Apr 29 (UNI) NASSCOM today welcomed Union Finance Minister P Chidambaram's announcement extending tax holiday to software companies under the Software Technology Parks of India (STPI) scheme till March 31, 2010.

A Nasscom release here said ''we are pleased that the extensive follow up and work done by NASSCOM with the PMO, Union Ministry of IT, Finance and Commerce, among others has provided this interim relief to the industry.

This decision would be particularly beneficial for BPO companies and the small and medium segment, who have been greatly impacted by the rupee appreciation, inflation and signs of slowdown of US economy.

''This benefit will also give us time to come up with other workable and acceptable options for the future, beyond 2010. The IT-BPO industry is expanding into tier two and three cities which will help remove the pressure on large centres and help in more balanced economic development'', it said.

''It is important that we incentivate this move to tier two and three cities with STPI/SEZ like benefits'', the release said and thanked Union IT Minister A Raja for his unstinted support.

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