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Budget Spl: AIFPA wants FM to extend certain relieves under Income Tax Act to Food Processing Sector

Updated: Jan 27, 2017 09:24:32am
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Budget Spl: AIFPA wants FM to extend certain relieves under Income Tax Act to Food Processing Sector

New Delhi, Jan 27 (KNN) The Food Processing Industry has urged Finance Minister Arun Jaitley to extend some reliefs to the sector in certain sections of Income Tax Act in the Union Budget to be unveiled next week.

Talking to KNN, Dr Sagar Kurade, President, All India Food Processors' Association (AIFPA) elaborated the demands from the MSME units from the food processing sector. (Watch Full Video)

Dr Kurade said, “Under 81 B of the Income Tax Act any enterprises or undertaking engaged in infrastructural projects is given upto 100% deduction on profits for 10 consecutive years since inception. We would like this benefit to be extended to food parks and mega food parks also.”

With effect from assessment year 2010-11, a new deduction u/s 35AD was introduced to provide incentive to those assessees who set up new business units in certain specified Areas/ Fields. This was applicable in case of setting up and operating cold chain facilities for specified products.

Dr Kurade said, “Under section 35 AD of IT Act, there is a 150% deduction allowed on expenditure of investment on cold chain infrastructure related projects. This is from 2012 onwards..We would like the same benefit to be extended to cold chain projects before 2012 projects..so we can take a ten year horizon.”

Further, the AIFPA Chief requested the Fin Min for prioritizing of subsidies.

He explained, “Right now as of effective 2015 there was a National Mission on Food Processing which got migrated to different states. However, different states have not taken up those benefits, so we would like all states associated to be encouraged to ensure that these benefits including subsidies are shared and dispersed to food processing industries.”

Also under section 32 of IT Act Accelerated Depreciation of 80% is allowed to some of the food processing sectors such as Roller Flour Mills etc. “We would like this benefit to be extended to all areas of food processing sectors,” he said. (KNN Bureau) (WATCH FULL VIDEO)

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