Tax incentives (or tax preferences) reduce the amount of tax which would otherwise be payable by a taxable entity. Broadly speaking, items which erode the normally accepted base of a tax may be treated as tax incentives. This book describes and critically evaluates the policy of liberal income tax exemptions and concessions to accelerate the pace of economic growth in India. It examines various theoretical issues related to the operation of tax incentives. It provides an overview of the present system of income tax incentives in India. Drawing on the experience of other countries, an attempt has been made to evaluate the system of tax incentives in India. The countries considered for comparative study are: UK, USA, France, Japan, Singapore, Malaysia and Bangladesh.