Hyderabad: Union finance minister Nirmala Sitharaman announced in the Budget on Friday that investment allowance and higher additional depreciation were provided for undertakings set up in backward regions in TS, AP, West Bengal and Bihar.
The Centre has allocated Rs 30 crore for the IIT, Hyderabad, Rs 120 crore for the Outer Ring Road Phase-2 and Rs 8 crore for tribal universities in both states.
The Centre had declared Anantapur, Chittoor, Kadapa, Kurnool, Srikakulam, Visakhapatnam and Vizianagaram of AP as backward districts and nine districts including Ranga Reddy, Medak, Karimnagar, Nizamabad, Adilabad, Nalgonda, Mahbubnagar, Warangal and Khammam of Telangana state as backward under the AP Reorganisation Act 2014.
In September 2016, the Central Board of Direct Taxes notified these districts for tax exemption.
As per the notification any manufacturing undertaking set up during the period from April 1, 2015, to March 31, 2020 is eligible for 15 per cent higher additional depreciation and 15 per cent of investment allowance on the cost of plant and machinery acquired by it during the period.
