« Top Headlines » Open DEMAT Account in 24 hrs  BackBack Income Tax Act amendment on cards on tax treatment of MSME dues  ITR-1, ITR-2, ITR-4 forms for FY 2023-24 available for e-filing. Check details here  Income tax slabs FY 2024-25: Experts share these 8 benefits for taxpayers in new income tax regime  How To File ITR Online - Step by Step Guide to Efile Income Tax Return, FY 2023-24 (AY 2024-25)  Old or new tax regime for TDS on salary? This post-election 2024 event will impact your tax planning  What Are 5 Heads Of Income Tax?  Income Tax Dept releases interim action plan for FY25 on tax collection, refund approvals   Income Tax Return: 5 lesser-known tax-saving tips from Section 80  Income Tax Return: 5 lesser-known tax-saving tips from Section 80  Why you need not rush to file your ITR immediately  Income tax returns: ITR-1, ITR-2, ITR-4 forms for FY 2023-24 available for e-filing «  Use FDI to expand tax base: Shome... North Block nixes Lalu`s plan for Rae Bareli... » Ficci wants infrastructure tax incentive back November, 15th 2006 Industry body Ficci wants the government to re-introduce tax incentives for the infrastructure sector.    In its pre-Budget wishlist to the government, the chamber has urged for restoration of tax exemption on income from investments in infrastructure projects.    The goverment had this year withdrawn sub-Section 23G of Section 10, which provided for tax exemption on such income. The government had justified this by saying that interest rates and corporate tax rates had gone down.    It had also cited exemption from tax on dividend income and from long-term capital gains tax in its defence.    Ficci has, however, told the government that tax rates have come down only marginally (effective rate being 33.66 per cent) and that tax flows from the sector have increased as infrastructure capital companies are subject to dividend distribution tax.    According to Ficci, the withdrawal has led to an increase in the cost of funds for infrastructure projects. Banks earlier used to charge a marginally lower interest rate on infrastructure projects as the net income of banks from these projects was considered tax-free.    However, with the withdrawal of this section, interest rates for all infrastructure projects will increase, Ficcis memorandum states.    The withdrawal would also affect the capacity of companies to raise cheap funds for future infrastructure projects, it said.    There are many ongoing infrastructure projects in critical sectors for which funds have been raised on the basis of the exemption.    In the absence of a grandfathering clause regarding income from existing investments in infrastructure projects, companies or infrastructure capital funds now have to pay tax on their income.    This amendment is in dichotomy with the recently introduced SEZ legislation which aims to provide fiscal incentives to private investors to create infrastructure in SEZs, the memorandum says.