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Tax incentives for 9 Telangana districts

Written By Indiagreat .in on Sunday, 2 October 2016 | 12:09:00

Hyderabad: The Union government on Saturday announced tax incentives for nine districts in Telangana to help boost industrial activity in the state. 

The nine districts which would be eligible for the incentives are Adilabad, Nizamabad, Karimnagar, Warangal, Medak, Mahbubnagar, Ranga Reddy, Nalgonda and Khammam districts. 

In exercise of the powers conferred by Section 32 and Section 32AD of the Income Tax Act 1961(43 of 1961), the Central government has notified 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.

Principal Secretary (Industries and Commerce) K V Suresh said accordingly the manufacturing units which are set up between April 1, 2015 and March 1, 2020 in these districts will be eligible for 15 per cent of higher depreciation and 15 per cent of investment allowance on the cost of plant and machinery acquired by it during the five year period. 

Even if the investment is made in the fifth year, the investment allowance would be available. It may be mentioned here that the Central Board of Direct Taxes had announced the tax incentives to seven districts of Andhra Pradesh on Friday. 

Following this, Telangana Finance Minister Eatala Rajender, who was in New Delhi to participate in the meeting of the General Sales Tax on Friday, demanded that the Centre should extend the tax incentives to the backward districts of Telangana as well. 

This, he said, was an assurance given in the AP State Reorganisation Act itself. He hoped that it would help the state to attract huge investments and would help in speedy growth of the new state.

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