Hyderabad: The Centre on Saturday extended tax incentives to nine backward districts in TS to boost industrial activity in state. The incentives will be applicable to all districts in the state except Hyderabad.
Manufacturing units set up between April 1, 2015 and March 31, 2020 will be eligible to claim tax incentives.
Interestingly, the announcement came a day after the Centre extended similar incentives to seven backward districts in AP.
The nine districts are Adilabad, Nizamabad, Karimnagar, Warangal, Medak, Mahbubnagar, Rangareddy, Nalgonda and Khammam.
The Central Board of Direct Taxes, Department of Revenue, Ministry of Finance notified that: “In exercise of the powers conferred by Section 32 and Section 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.”
Manufacturing units will be eligible for tax incentives like 15 per cent additional depreciation and 15 per cent investment allowance on the cost of plant and machinery acquired by the during the notified period. The incentives will be in addition to other tax benefits offered under Income Tax Act.
