tech2 News StaffFeb 01, 2017 09:36:47 IST
India’s Ministry of Electronics and Information Technology has submitted a request for an extension of income tax and related benefits that research and development (R&D) currently receives.
Gadgets Now reports that the IT Ministry’s list was submitted to the finance ministry ahead of the Union Budget meting that’s scheduled for today. The primary request is for the extension of “R&D benefits under Section 35(2AB) of the Income Tax act to software products and the chip design industry”, adds the report.
As Gadgets Now points out, any expenditure in R&D in biotechnology can result in a 200 percent deduction under the current scheme.
Given the government’s make in India plans and the push for manufacturing in India, such sops will be beneficial.
Currently, manufacturers that make in India only assemble products here. The actual manufacturing, design and research work happens abroad.
Obviously, R&D in chip design is not going to happen overnight, but if the groundwork is set now, India does stand to benefit in the long run.
Software development is included in the list, which will also be beneficial to the vast development talent available in the country.
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