In addition, Care expects the inclusion of IT/ITES in the list of specified services for availing 150 percent deduction on expenditure incurred on skill development projects. This, according to the agency, will encourage investment in skill development.
Clarity with respect to eligibility of IT/ITES companies for weighted deduction on R&D expenditure will help encourage investments in R&D, says a Care Ratings report on pre-Budget expectations.
In addition, Care expects the inclusion of IT/ITES in the list of specified services for availing 150 percent deduction on expenditure incurred on skill development projects. This, according to the agency, will encourage investment in skill development.
It also expects deduction under Section 32AC to be extended to IT/ITES. Care says the companies are allowed a deduction of 15 percent on cost of investments. Such reduction in book profits will give the companies benefit of investments.
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