The fast growing information technology sector was on Tuesday given tax exemption till March 2010 with government extending the sunset clause by a year, making the players more confident to fight US slowdown and pressures from a rising rupee.

"The most appropriate occasion to announce a decision in this regard would have been Budget 2009-10. However as things stand, the Budget for 2009-2010 may not be presented in February 2009, but only after the general elections," Finance Minister P Chidambaram said in the Parliament.

"Therefore in order to avoid any uncertainty, it is being decided that the two sections (related to software parks and export-oriented units) will be amended. The exemptions continue until March 31, 2010 to give government sufficient flexibility to take a well considered decision," he added.

The $ 31 billion Indian software export and services industry is fighting a slowdown in the US economy -- from where 70 per cent of its revenue comes, lower margins, high wage bills and less competitiveness due to a rising rupee.

The industry braving all odds is on course to achieve a 32 per cent growth in 2007-08 and $ 60 billion export revenue in 2010. Software companies avail the tax exemption benefit for export revenues under the Software Technology Parks of India scheme, which provides a number of tax sops including a 10-year tax holiday to units registered under it.