Lok Sabha Question No. 1306 (UNSTARRED), answered on 2019-11-25
Subject: Tax Exemption to Corporates
Ministry: FINANCE
Asked by: N.K. Premachandran

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OR REVENUE

## LOK SABHA

## UNSTARRED QUESTION NO.1306

TO BE ANSWERED ON MONDAY THE 25 TH  NOVEMBER, 2019/Agrahayana 4, 1941 (Saka)

'TAX EXEMPTION TO CORPORATES'

## 1306. SHRI N.K.PREMACHANDRAN :

Will the Minister of FINANCE be pleased to state:

- a) the details of tax exemption given by the Government to corporate during the last five years;
- b) whether the Government proposes to give more exemption to the corporates and if so, the details thereof and reason therefore;
- c) whether  it  has  come  to  the  notice  of  the  Government  that  the  corporates  are  making huge profit from Indian markets;
- d) if  so, the details of the action taken by the Government to ensure the strengthening of Indian Economy through the activities of the corporates;
- e) the  details  of  the  benefits/exemptions  given  by  the  Government  to  each  corporate  in doing business in India;
- f) whether the exemption given by the Government to corporates is helpful to the growth of Indian Economy and if so, the details thereof; and
- g) the  details  of  the  approximate  amount  given  by  the  Government  to  each  corporates through various exemption and schemes?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI ANURAG SINGH THAKUR)

- (a) The details of revenue foregone due to deduction/exemptions under the Income-tax Act availed by Corporates from FY 2014-15 to FY 2018-19 is given in the following table:

| Financial Year   | Revenue Forgone (in Rs. crores)   |
|------------------|-----------------------------------|
| 2014-15          | 65,067.21                         |
| 2015-16          | 76,857.70                         |
| 2016-17          | 86,144.82                         |
| 2017-18          | 93,642.50                         |
| 2018-19*         | 108,785.41                        |

The above figures are as per the Receipt budget statements available in the budget documents for respective years.

- (b) There is no such proposal.
- (c) NIL
- (d) NIL
- (e) &  (g) There are various sections under  the Income-tax Act,  1961  which  provide benefits/exemptions  to  corporates.    The  amount  of  revenue  forgone  on  account  of  various exemptions provided to corporates for FY 2018-19 is given as under
- f) The  exemptions  provide  by  the  Government  to  corporates  are  intended  to  have  a multiplier  effect  in  the  economy.  The  exemptions/deductions  are  expected  to  attract  fresh investment in manufacturing, production, trading and service providing companies which are expected to not only result in new job creation but also lead to increased incomes.'

| Nature of incentive to Corporates                         | FY 2018-19 (Projected) ( ₹ in crore)   |
|-----------------------------------------------------------|----------------------------------------|
| Accelerated Depreciation                                  | 67,758.18                              |
| Deduction for units located in SEZs                       | 24,300.22                              |
| Deduction for undertakings in the power sector            | 15,478.23                              |
| Deduction/weighted deduction for scientific research      | 7,936.82                               |
| Deduction for development of infrastructure facilities    | 7,948.38                               |
| Deduction for undertakings set-up in Sikkim               | 2,696.26                               |
| Deduction for undertakings set-up in Uttarakhand          | 2,089.14                               |
| Deduction for undertakings set-up in North Eastern States | 1,384.28                               |
| Deduction for production of mineral oil and natural gas   | 1,275.60                               |
| Investment-linked deduction for specified business        | 2,068.66                               |
| Deduction for developers of SEZs                          | 1,815.44                               |
| Deduction for donations to charitable entities            | 2,160.90                               |
| Other Deductions                                          | 2,574.01                               |
| Total                                                     | 1,39,486.12                            |
| Less: Collection throughMAT                               | 30,700.70                              |
| Total Revenue Foregone                                    | 1,08,785.41                            |

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