New Delhi: The government has extended by another year the 10-year tax holiday for the power sector, Finance Minister Arun Jaitley announced Thursday,
With this, the eligible date for projects in the power sector to avail the benefit under section 80-IA of the Income Tax Act stands extended from March 31, 2014 to March 31, 2015.
Also Read: Highlights of Union Budget 2014-15
The law allows a power producer to claim tax exemption for up to 10 years within the first 15 years of a project’s operations.
The government last year extended the scheme, which primarily benefits independent power producers plagued by issues like fuel supply shortages, until March 2014.