Denemek ALTIN - Özgür
AXE THE TAX
Hotelier India
|February 2021
Confused about the income tax support extended by the government to the hospitality industry? Here’s an effort to simplify it

Many have rued the disastrous impact of the lockdown on India’s hospitality sector. However, even before the pandemic struck, hotel occupancy rate were hovering around 70%.
The hospitality and tourism domains account for 12.75% of India’s total employment, which is fairly significant. Due to COVID-19 and the subsequent lockdowns, the industry witnessed an estimated 70% job loss, which had a spiralling effect on the overall economy.
Diptikant Parhi, Partner, BGJC Associates & LLP tells Vinita Bhatia about the income tax (IT) benefits that the government extended to the hotel industry keeping the pandemic, lockdown and the unlocking phases in perspective.
CUT TO THE CHASE
The first thing one needs to understand is that there is no specific endowment in the Income Tax Act, 1961 that gives special benefits and concessions to the hotel industry, unlike the Australian Income Tax. However, one need not lose heart.
There are some general provisions in this Act that offers benefits to all tax payers. This allows them to set off the current year losses arising from businesses or professions from the subsequent year’s profits up until eight assessment years under the same head. So, let us further analyse the measures taken by the government to give concessions following the unprecedented lockdown resulting in disruption of all business activities.
To begin with, TDS rate was reduced by 25%, resulting in lesser funds being blocked in tax and more funds being made available to hotel industries. For example, if their income was INR 100 preCOVID-19, the receipt after TDS was INR 90 while post-COVID-19 it will be INR 92.5 (assuming that the TDS rate was 10% before March 2020 and 7.5% post-COVID).
Bu hikaye Hotelier India dergisinin February 2021 baskısından alınmıştır.
Binlerce özenle seçilmiş premium hikayeye ve 9.000'den fazla dergi ve gazeteye erişmek için Magzter GOLD'a abone olun.
Zaten abone misiniz? Oturum aç
Hotelier India'den DAHA FAZLA HİKAYE

Hotelier India
From Touchpoints to Trust
Technology drives revenue in hospitality by enabling wider market access, optimising service delivery, and offering valuable consumer insights.
6 mins
July 2025

Hotelier India
Why culinary schools must nurture entrepreneurship, not just chefs?
An expert view on equipping students with not just kitchen skills but also business acumen...
4 mins
July 2025

Hotelier India
From Lobby to Lifestyle: Revenue Reimagined
Hotels today are expanding revenue streams through experience-led models that are auguring well for the bottom line.
6 mins
July 2025

Hotelier India
India's Top GMs Take the Stage
The first edition of the GM Awards 2025 was a rocking success, celebrating the true custodians of hospitality.
2 mins
July 2025

Hotelier India
“It's not always easy, but it's always worth it!”
Sunil Kumar, General Manager, JW Marriott Hotel Kolkata, reflects on leadership, service excellence, and blending global standards with a human touch in luxury hospitality.
4 mins
July 2025

Hotelier India
GIG'S THE GOOD WORD
Chances of re-employment after 40 have dropped drastically. In fact, past that age, holding on to employment is not easy either. Also, if you have been salaried your whole working life, it's unlikely entrepreneurship will suit you. Several 'ifs' and 'buts' raise the risk of failure. Dominic CostaBir cues you in on a third alternative...
3 mins
June 2025

Hotelier India
Taking India Home
How airports are becoming gateways to Indian craftsmanship...
3 mins
June 2025

Hotelier India
Used Cooking Oil: From Waste to Wealth
How Indian hospitality industry is switching to biofuel...
3 mins
June 2025

Hotelier India
Tech Meets Touch
Sandeep Ahuja, Global CEO, Atmosphere Living, spotlights on the role skilled talent plays in balancing high-tech service with the human touch in hospitality.
3 mins
June 2025

Hotelier India
Sustainability Meets Sophistication
The future of eco-friendly luxury catering...
3 mins
June 2025