The Ministry of Finance granted approval to the Company under Section 127 of Income Tax Act, 1967 for income tax exemption in the form of an Investment Allowance (“IA”) of 60% on qualifying expenditure incurred within a period of 5 years commencing 1 July 2009to 30 June 2014, to be set off against 70% of the statutory income for each year of assessment.
Any unutilised allowance can be carried forward to subsequent years until fully utilised.
The amount of income exempted from tax is credited to a tax-exempt account from which tax-exempt dividends can be declared