Industry seeks 15 per cent concessional tax rate extension, set-off of losses

Extension of the concessional tax rate of 15% for domestic infrastructure companies and non-corporate taxpayers such as limited liability partnerships and trusts, exemption from withholding tax on payment of interests on overseas bonds having maturity period of more than five years, and allowing carry forward and set-off of business losses for services sector top the industry wish list for the interim budget for 2024-25.

India had allowed all new companies set up after October 1, 2019, in the manufacturing sector and electricity generation to avail corporate tax rate of 15%. Industry bodies including Assocham and PHD Chamber of Commerce and Industry want this concession to be extended to other sectors including infrastructure.

They have also pitched for lowering of the corporate tax rate of 30% for limited liability partnership (LLPs), firms, trusts, association of persons (AoPs).


Industry bodies have sought benefits under Section 72A of the Income Tax Act, which encourages amalgamation and restructuring of a company by allowing carry forward and set-off of accumulated business losses and unabsorbed depreciation of the predecessor to the successor, to be extended to the services sector. They have also sought clarification on applicability of "prerequisites", saying it has complicated the travel and lodging expenditure of a consultant providing services and out-of-the-pocket expenditure.

On the indirect taxes front, industry bodies have sought removal of customs duty on essential inputs.