The Telegraph
Friday , July 11 , 2014
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SUUTI sop extension

People watch the budget in Calcutta on Thursday. Picture by Kishor Roy Chowdhury

New Delhi, July 10: The tax break granted to the Special Undertaking of the Unit Trust of India (SUUTI) is being extended by another five years till March 31, 2019.

SUUTI was created when the Unit Trust of India collapsed in 2001 amid fears that the state-owned mutual fund would not be able to fulfil its obligations to investors. The UTI was split into two — UTI Mutual Fund and SUUTI which holds stakes in Axis Bank, ITC and L&T.

SUUTI was originally exempt from income tax or any other tax on income, profits or gains derived from its holdings for a period of five years from February 1, 2003.

The exemption has been extended three times since.

The government has now decided to extend it again, a move seen as a sign that the government does not plan to unwind its holdings in private firms held through SUUTI.