With Income-Tax department serving demand notice on IT majors, including Wipro, software association Nasscom on Wednesday said that it is in a dialogue with the government on the issue of tax benefits and hoped it would be resolved soon.

Tata Consultancy Services and IBM too have been served with similar notices of varying amounts.

"We are in dialogue with government on this," Nasscom President Kiran Karnik told reporters on the sidelines of an event in New Delhi.

While the issue had arisen due to different interpretations of the existing rules under section 10A and 10B of IT Act that allows for a 10-year tax holiday, Karnik said: "Our view is 'do not let regulation drive policy.' The policy intent is to encourage exports and the incentive for this is the 10A /10B tax holiday."

Pointing out that he was hopeful of a resolution, Karnik said, "If it is interpreted differently then change the rules in line with policy intent."