Budget Briefs:Policy Measures to promote Growth and Employment Generation in Indian Economy

The Tax Policy Measures in the direction of Growth and Employment generation are:

1. Profit-linked deduction was introduced for start-ups.
2. The scope of investment-linked deduction was broadened by including certain new sectors including infrastructure which are critical to growth.
3. Investment allowance and higher additional depreciation was provided for undertakings set up in backward regions of states of Andhra Pradesh, Bihar, Telangana and West Bengal.
4. Incentive for employment generation was broadened and the conditions for eligibility to claim the incentive were relaxed.
5. Benefit was provided for computation of MAT liability and carry forward of loss for companies under Insolvency and Bankruptcy code (IBC).
6. Safe Harbour provisions were further liberalised to align with industry standards.
7. Scope of domestic transfer pricing provisions was restricted only for transactions between enterprises having profit-linked deductions.
8. Pass through status was provided to Category I & II Alternative Investment Funds (AIFs).
9. The time period for carry forward of MAT credit was increased from 10 to 15 years.