New Delhi, April 2: The authorities panel on services sector have proposed a new information protection law to check up on cyber crime. It have also suggested that the taxation vacation under the software system engineering Parks of Republic Of India (STPI) strategy be continued beyond 2009.
According to the panel, a new law devising the companies responsible for carelessness in maintaining security on sensitive information or information should be inserted in the Information Technology Act, 2000.
Putting the burden of protecting information on companies processing it will have got a positive consequence in preventing violations.
At present, foreign companies outsourcing to Republic Of India trust on contractual duties and internal security measurements put up by North American Indian BPO firms. While big outsourcing houses follow the security norms, littler and mid-sized companies disregard the regulations to cut down further costs involved in setting up the security measures.
If the taxation vacation is withdrawn, STPIs will lose the level-playing field vis-a-vis particular economical zones. Therefore, it is recommended that the authorities either retreat the taxation vacation for SEZs or go on the inducement for IT companies, the study of the panel said.
STPIs bask direct taxation freedom under Sections 10A and 10B of the Income Tax Act, 1961. The benefits are scheduled to run out on March 31, 2009. There are more than than 8,000 units of measurement registered under STPIs in the country.