« Top Headlines » Open DEMAT Account in 24 hrs  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  Section 80DDB tax benefits for specified illnesses: 5 things to know  Income tax slabs FY 2024-25: Five tips to help taxpayers decide between old and new income tax regimes  ITR-1, ITR-2, ITR-4 forms for FY 2023-24 (AY 2024-25) available now on e-filing income tax portal «  Mr Taxman, can you tell me...... RBI to mop up Rs 6,000 cr via bond auction... » Sec 80 IA withdrawal to hit construction cos March, 03rd 2007 Construction companies will see their tax burden going up on account of the removal of Section 80 IA benefits. Section 80-IA was introduced for encouraging private sector participation in the development of infrastructure, and not for persons/entities who were merely executing the civil construction work or any other works contract. The new amendment will take retrospective effect from 1st April, 2000, and will, accordingly, apply in relation to the assessment year 2000-2001 and subsequent years. As a result, construction companies that merely execute development work will have to shell out a lumpsum towards past tax provisions. Thus, in a case where a entity makes the investment and carries out the civil construction work will be eligible for tax benefit under section 80-IA. In contrast to this, an entity that enters into a contract with an eligible participant for executing works contract will not be eligible for the tax benefit under section 80-IA. Construction contractors had so far been availing of the section 80IA benefit for projects awarded by infrastructure developers viz NHAI and state government agencies-awarded projects in roads & bridges, irrigation, water supply and sanitation. These benefits meant that companies were paying a minimum alternate tax (MAT)  of 11.2%. However, the clarification to section 80IA now stipulates that these companies pay the full tax rate of 33.66% from retrospective effect from 1st April, 2000.    RETROSPECTIVE IMPACT In Rs crore   IVRCL     54.90 HCC    42.40 Gammon     32.00 NCC     26.00 Source and estimates by Prabhudas Lilladher Going forward, companies will have to provide for full tax.  According to an analysis by brokerage firm Prabhudas Lilladher, these companies will have to adjust for this from their reserves thereby impacting their respective net worth.