Question : Income Tax Rebate on Promotion of Solar Energy

(a) Whether the Government provides income tax rebate for investment in solar energy sector and to the supplies of solar energy equipments for making investment in the said sector.

(b) If so, the names of companies and agencies which have got the said rebate during the last three years.

(c) Whether the Government has conducted any investigation to ascertain that the companies filing claim for the said rebate fulfills the criterion of getting rebate.

(d) If so, the details thereof.

(e) the names of companies filing false claims during the said period and the action taken by the Government against such companies?

THE MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI JAYANT SINHA)

(a): Some of the important incentives available under the Income tax Act, 1961 (‘Act’), in relation to solar energy sector are as follows-

(i) enhanced rate of depreciation (80%) on prescribed renewable energy devices, including solar energy devices
(ii) tax incentives, that are available under the Act to the entities operating in power sector, may also apply to entities operating in solar power sector subject to fulfillment of prescribed conditions.

(b): No such information is maintained in a centralised manner.

(c): Investigation into tax evasion is an ongoing process. Whenever any instance of tax evasion is noticed by the Income-tax Department, including cases of false claims of deduction/exemption, appropriate action including Searches, Surveys, assessment of income, levy of tax, imposition of penalty and launching of prosecution, is taken as per law, depending upon the facts and circumstances of each case.

(d): Disclosure of information regarding specific taxpayers is prohibited except as provided under section 138 of the Income-tax Act, 1961.

(e): Does not arise in view of reply to (d) above.