- Arts & Entertainment
- All Stories
Business & Economy
Govt. notifies 21 Bihar districts as Backward Areas to help industries set up there
New Delhi, August 19, 2015
The Government has notified 21 districts of Bihar as Backward Areas to provide additional benefits to manufacturing units or enterprises set up in them during the period 2015-20.
An official press release said these undertakings would be eligible for 15% additional depreciation under Section 32(1)(iia) and 15% investment allowance under Section 32AD of the Income-tax Act, on the cost of plant and machinery acquired and installed by them during the said period.
The Government had earlier amended the Income Tax Act 1961 through the Finance Act 2015 to provide such tax benefits to notified backward areas in specified states, including Bihar, to give them an opportunity to grow faster.
The latest notification, dated August 17, 2015, gives effect to the amendment, it said.
The 21 districts listed in the notification are: Patna, Nalanda, Bhojpur, Rohtas, Kaimur, Gaya, Jehanabad, Aurangabad, Nawada, Vaishali, Sheohar, Samastipur, Darbhanga, Madhubani, Purnea, Katihar, Araria, Jamui, Lakhisarai, Supaul, and Muzaffarpur.
The release said the incentives are in addition to other tax benefits available under the Income-tax Act.
Thus a manufacturing undertaking/enterprise set up in any of these areas during the aforesaid period will be eligible for 35% (instead of 20%) of additional depreciation. This would be over and above the normal depreciation of 15%. Besides, a company engaged in manufacturing will also be eligible for 30% (instead of 15%) 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.