Companies engaged in business processing outsourcing (BPO) activities are entitled to various tax holidays under the Income Tax Act, 1961.

Partner
KR Chawla & Co
Units set up by these companies in Free Trade Zones (FTZs), Electronic Hardware Technology Parks (EHTPs), Software Technology Parks (STPs), or Software Export Zones (SEZs) are entitled to certain exemptions on profits generated from exporting articles, things or computer software.
The term “computer software” includes IT enabled services such as data processing, data entry and conversion, data analysis and control, data management call centre operations, etc.
The entire export profits of a company set up in an STP, SEZ, FTZ, or EHTP are exempt from tax until 31 March, 2009.
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Sumes Dewan is a partner at KR Chawla & Co Advocates & Legal Consultants. The firm is headquartered in New Delhi and has offices in Chennai and Bangalore as well as a representative office in Singapore.

Head Office
7th Floor, Kailash Building
26, Kasturba Gandhi Marg
New Delhi – 110 001
India
Tel: +91 11 2335 7658-61
Fax: +91 11 2331 9997
Email: krclo@krcco.com
Singapore
9 Temasek Boulevard
#32-01 Suntec Tower 2
Singapore – 038989
Tel: +65 6432 5220
Fax: +65 6332 1485
Email: krlcosingapore@krcco.com