The Tax Policy Measures in the direction of Growth and Employment generation are:
- Profit-linked deduction was introduced for start-ups.
- The scope of investment-linked deduction was broadened by including certain new sectors including infrastructure which are critical to growth.
- 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.
- Incentive for employment generation was broadened and the conditions for eligibility to claim the incentive were relaxed.
- Benefit was provided for computation of MAT liability and carry forward of loss for companies under Insolvency and Bankruptcy code (IBC).
- Safe Harbour provisions were further liberalised to align with industry standards.
- Scope of domestic transfer pricing provisions was restricted only for transactions between enterprises having profit-linked deductions.
- Pass through status was provided to Category I & II Alternative Investment Funds (AIFs).
- The time period for carry forward of MAT credit was increased from 10 to 15 years.
