Govt announces tax sops for manufacturing units in Bihar's backward districts
Updated: Aug 19, 2015 03:49:45pm
New Delhi, Aug 19 (KNN) Any manufacturing undertaking or enterprise set-up during the period from April 1, 2015 to March 31, 2020 in 21 backward areas of Bihar will be eligible for 15 per cent additional depreciation under Section 32(1)(iia) and 15 per cent investment allowance under Section 32AD of the Income-tax Act, on the cost of plant and machinery acquired and installed by it during the said period.
“The provisions of the Income-tax Act 1961 have been amended through Finance Act 2015 to provide certain tax benefits to notified backward areas in specified States including State of Bihar to give these areas an opportunity to grow faster,” Ministry of Finance today said in a statement.
The 21 districts notified as Backward Areas include – Patna, Nalanda, Bhojpur, Gaya, Muzaffarpur, Madhubani etc.
A manufacturing undertaking/enterprise set up in any of these areas during the aforesaid period will be eligible for 35 per cent (instead of 20 per cent) of additional depreciation. This would be over and above the normal depreciation of 15 per cent.
Besides, a company engaged in manufacturing will also be eligible for 30 per cent (instead of 15 per cent) of investment allowance if its investment in new plant and machinery during the period 1.4.2015 to 31.3.2017 exceeds Rs.25 crore, the Finance Ministry said. (KNN Bureau)
“The provisions of the Income-tax Act 1961 have been amended through Finance Act 2015 to provide certain tax benefits to notified backward areas in specified States including State of Bihar to give these areas an opportunity to grow faster,” Ministry of Finance today said in a statement.
The 21 districts notified as Backward Areas include – Patna, Nalanda, Bhojpur, Gaya, Muzaffarpur, Madhubani etc.
A manufacturing undertaking/enterprise set up in any of these areas during the aforesaid period will be eligible for 35 per cent (instead of 20 per cent) of additional depreciation. This would be over and above the normal depreciation of 15 per cent.
Besides, a company engaged in manufacturing will also be eligible for 30 per cent (instead of 15 per cent) of investment allowance if its investment in new plant and machinery during the period 1.4.2015 to 31.3.2017 exceeds Rs.25 crore, the Finance Ministry said. (KNN Bureau)
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