The Tourism Industry has requested the Government of India for the following fiscal benefits including tax rebate and relaxations:
i. Inclusion of tourism infrastructure like hotels/resorts/tourist lodges/banquet halls/convention and exhibition centres etc. for benefits of Section 32 AC of Income Tax Act 1961 by lowering the minimum threshold investment limit to Rs.5.00 crores.
ii. Extension of benefits under Section 35 AD of Income Tax Act 1961 to business concerns who are making capital investment in setting up of smaller category of hotels/guest houses/dharamsalas/tourist hostels/motels/wellness facilities/medical facilities and other associated infrastructure like installation of house boats/ adventure and leisure tourism facilities.