Tax breaks: Tech major Infosys upset with Govt

UNFAIR DEAL: Infosys believes not only will the industry suffer but also the professional middle class.

Featured Blog

Rajdeep Sardesai

Maharaj or Dada, Ganguly's legacy lives on

Featured Slideshows

New Delhi: Infosys has announced strong earnings growth for the next quarter, pleasantly surprising analysts. But it lashed out at the Government for not extending tax breaks.

India's second largest software company Infosys is upset with the Government. The reason - tax breaks on software technology parks, which have not been extended.

Infosys believes not only will the industry suffer but also the professional middle class, for whom the IT sector has been the largest employer.

Infosys member of Board-HR V Mohandas Pai said, “I sense there is some angst in the Government against software companies. What the government seems to forget is that this industry created 4 lakh 30 thousand jobs in this fiscal. This industry is the leading job creator for the middle class.”

The industry and Infosys believes that India could lose a huge competitive advantage as a result of the tax breaks being withdrawn. More at risk are the smaller IT firms.

So far IT continues to be one of the largest employers, this year Infosys will be hiring 25,000 professionals.

But with a rising rupee bringing down India's cost advantage and the removal of tax breaks - the Indian IT industry could be in danger of losing its leadership status in the world.