The Technology Development Authority headed by Mr. Nandan Nilekani to bring focus in the government for implementing IT projects for tax administration (IT and service tax) and other governmental initiatives is a good step.
He has proposed significant funding for the UID project, has increased allocations for school education and infrastructure development, has announced a programme for skill building for 50 crore people by 2012 and higher allocations for rural development.
The reduction in Personal Income tax and introduction of additional investment incentives is a welcome relief for the large IT industry employees. However the IT industry would have liked to see the extension of the tax benefits under the STPI scheme beyond 2011 and no increase in the MAT.
The increase in MAT is likely to impact the SMEs the hardest and was avoidable atleast for the IT industry. Both these are missed opportunities for the Government to further boost the IT industry which is recovering very well in the last 3 months and we hope these will be considered by the Government in the coming days.''