Tax holiday extended for power sector projects
In a bid to boost power capacity, the Union Budget 2011-12 extended the tax holiday for power sector projects including ultra mega power projects, which take off this fiscal. Finance Minister Pranab Mukherjee said that the tax holiday for the power sector will be extended till 31 March 2012. The power sector is entitled to tax exemptions, under Section 80-IA of the Income Tax Act, which ends this fiscal.
The exemption will benefit projects that are expected to take off in the remaining time of the 11th Five Year Plan (2007-12), including ultra mega power projects.
Projects that start generation, distribution, transmission or that undertake substantial renovation and modernisation of existing network are eligible for exemption.