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CBDT notifies 10 services for claiming tax breaks
July, 27th 2006

The Central Board of Direct Taxes (CBDT) has come up with a list of ten public services that would be considered as "infrastructure facility" for the purpose of availing certain tax breaks under the income-tax law.

The specified list includes inland container depots and container freight stations, mass rapid transit system, light rail transit system, expressways, bus and truck terminals, subways, bulk-handling terminals for the development of rail system and multi-level car parking system.

Official sources said that the CBDT move would encourage more investments in infrastructure in the country.

They said that entities that invest in or finance such infrastructure facilities would be entitled for claiming tax deduction on a proportion of their income.

The CBDT has also spelt out the conditions that need to be fulfilled by companies for availing themselves of tax breaks under Section 36 (1)(viii) of the Income-Tax law.

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