India is a major Information Technology software exporter in the world

Export of Software-India is a major Information Technology software exporter in the world. India is regarded as the premier destination for the global off-shoring market of IT-ITeS, accounting for almost 55% share in 2010.  The amount generated as a result of export during the last three years is as under: The export of software in the current financial year i.e., F.Y. 2011-12 is projected at US$ 68-69 billion.  Government extends several incentives for Information Technology Sector in the country under the Software Technology Parks (STP) scheme.Besides, software is also exempted from basic customs duty.  Furthermore, several items for the IT sector are covered under the ITA Agreement, and hence exempted from customs duty.Section 10AA of the Income Tax Act provides for a deduction from the total income of hundred percent of profits and gains derived by a unit located in a Special Economic Zone (SEZ) from the export of articles or things or from services for the first 5 consecutive assessment years, of fifty percent for further 5 assessment years and thereafter, of fifty percent of the ploughed back export profit for next 5 years.This information was given by Shri Sachin Pilot, Minister of State for Communications and Information Technology in written reply to a question in Lok Sabha today.