Budget 2011 -Nothing cheering for IT sector; no extension to STPI

The 2011-12 Budget has failed to bring cheer to the Indian IT sector as Finance Minister Pranab Mukherjee did not make any major announcements to boost the segment. IT companies were batting for reduced tax rates and continuation of sops under the STPI to help the industry, which is seeing a recovery in demand after almost two years of slowdown.

“I propose to increase the rate of Minimum Alternate Tax (MAT) from the current rate of 18 per cent to 18.5 per cent of book profits,” Finance Minister Pranab Mukherjee said today during his presentation of the Budget 2011-12.

However, the Software Technology Parks of India (STPI) scheme was not extended.