The CII has also suggested special tax breaks for corporates who wish to donate computers, content and software, etc., and urged for simplification of procedures to make business environment conducive and increase velocity of business. The Confederation has recommended minimum 10 per cent customs duty differential between input parts, components and finished goods. Referring to the WTO agreement, the CII stated that as per the agreement, customs tariff on IT items are to be brought down in stages to zero and believes that for a vibrant indigenous manufacturing base of IT hardware, it is necessary that differential between inputs parts, components and finished goods be maintained. In order to encourage usage, enhance PC penetration and help address national objectives of creating an IT literate population, the PC should be added to the list of employee benefits, that can qualify for the standard tax exemptions. This will go a long way in increasing PC penetration where companies can play a role in contributingto national objectives, according to the CII.

To leverage technology to provide the best opportunities for young Indians, the confederation has recommended that to expand the Section 80G of the Income Tax Act be expanded to allow for computer and Internet-related donations made to schools run by the central and state governments to be eligible for 100 per cent tax deduction. With regard to the taxation of ESOP, CII has stated that a clarification needs to be issued to the effect that for ESOP shares obtained prior to March 31st, 2000, capital gains on sale will be calculated on the difference between sale consideration and market price on date of exercise of option. This clarification would give a tremendous boost to the software sector, according to CII.