ISPs ask for Income Tax Sops

Citing the country's poor broad band penetration, Indian internet service providers (ISPs) have asked the government for a five year income-tax holiday. According to TRAI (Telecom Regulatory Authority of India), India currently has just under 2 million broad band connections. India has failed to achieve the targets set out by the broad band policy, which had envisaged 3 miilion high-speed internet connections by 2005. The country has set an optimistic target of 10 million broad band connections by 2007. The ISP Association of India (ISPAI) also sought for 100% depreciation for computers within the first year and a similar depreciation on Broadband customer premise equipment (CPE) including set top boxes, modems and wireless radios within the first year.

Further, the association suggested that the allowance of Rs. 6,000 p.a for broad band service access at home should be exempt from tax.

We have to wait till Budget is presented in february, whether the suggestions made by the ISPAI will be accepted by our FM, Mr. Chidamaram.