The Lok Sabha has passed the Taxation Laws (Amendment) Bill, 2016, which provides tax incentives to the garment sector.
The bill eases the condition for availing tax incentives (for the garment sector) under Section 80JJAA of the Income Tax Act, 1961.
“In view of the seasonal nature of the business of the manufacturing of apparel, there is need to reduce the period of employment of an employee who is employed in this business from 240 days to 150 days,” said the state of objects and reasons of the Bill.
The bill was passed by voice vote after a short debate. Finance minister Arun Jaitley said the incentive is aimed at making Indian “apparel industry competitive, so that they are able to make the cost advantage. I am sure that with these incentives, the industry would be able to contribute a large number of jobs.”
The bill also seeks to expand the definition of 'demerger' with a view to facilitate the splitting or reconstruction of erstwhile public sector companies. (RKS)
Fibre2Fashion News Desk – India