After the Direct Taxes Code (DTC) comes into effect,The government may consider giving sops to IT companies in the country, Communications and Information Technology Minister Kapil Sibal said today. 

Kapil Sibal told reporters"As you know, the 10-year tax (break) period is over, so we are waiting for the DTC to be put in place...We will certainly try and do something,"

He, however, did not divulge more on this. The effective tax rates have gone up for IT companies after the Software Technology Parks of India (STPI) scheme ended earlier this year, trimming profits. 

However, the STPI scheme which offered a 10-year tax break, came to an end on March 31, 2011. 

The Indian IT industry, which gets about 80 per cent of its revenues from exports, has been concerned about the unemployment rates in the US and financial turmoil in certain European economies. 

The industry is already reeling under high interest costs, soaring inflation and increasing labour costs. The sops, if introduced, would bring respite, especially to small and medium sized firms. 

"The US and Europe account for over 80 per cent of India's $ 60 billion IT industry and macro-economic uncertainty in these parts of the world are bound to make the market gloomy," it further added. 

However, IT industry body Nasscom, exuded confidence that the sector will "sail through" the crisis. The Indian IT sector will not be impacted much by recessionary trends in Europe and the US as the industry is poised to grow on increasing domestic demand and by tapping new markets outside the West, Nassocm had said.