NASSCOM hails tax holiday extension

Chennai, Apr 30 (UNI) NASSCOM today hailed Union Finance Minister P Chidambaram's announcement on a one-year extension of tax holiday to software companies under the Software Technology Parks of India (STPI) Scheme.

This decision was 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, the NASSCOM said here in a release.

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

"It was important we incentivate this move to tier two and three cities with STPI/SEZ like benefits," NASSCOM added.

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