Industries to get tax rebatesin nine Telangana districts
October, 03rd 2016
In order to boost industrial activity in the Telangana State, the Centre has extended tax incentives for nine backward districts of the State except Hyderabad.
The nine districts which will get the benefit of concessions are Adilabad, Nizamabad, Karimnagar, Warangal, Medak, Mahbubnagar, Rangareddy, Nalgonda and Khammam.
According to a statement from Principal Secretary – Industries, Telangana, the Central Board of Direct Taxes, Department of Revenue, Ministry of Finance, has notified that “In exercise of the powers conferred by Sections 32 and 32AD of the Income Tax Act, 1961 (43 of 1961), the Central Government hereby notifies the nine districts of Telangana as backward areas under the first proviso to clause (iia) of Sub-Section (1) of Section 32AD of the said Act.”
Accordingly, manufacturing units which are set up between April 1, 2015, to March 31, 2020, will be eligible for tax incentives such as additional depreciation and investment allowance under the provisions.
The Centre had extended similar concessions to seven backward districts of Andhra Pradesh.
Under the concessions extended by the Centre according to the State’s Re-Organisation Act, manufacturing/ industrial units will be able to get the benefit of tax incentives such as 15 per cent additional depreciation and 15 per cent investment allowance on hdthe plant and machinery acquired.
Significantly, these incentives will be in addition to other tax benefits extended by the Centre and State governments.