Experiences of selected 72-A companies

Abstract

This study has been undertaken to examine how the business sector reacts to the fiscal incentives announced by the Government, compare it with the objectives and expectations of the Government in introducing such measures and see if any general guidelines could be formulated to ensure congruence of objectives of the two sectors. For this purpose, the authors have selected to study the operation of Sec-72-A of the Income Tax as a study in point. Since eight years had elapsed since the introduction of this provision, the authors felt that sufficient information should be available to evaluate the success or otherwise of this provision.