On 20 August 2015 Central government announced 30 per cent income tax rebate for establishment of new manufacturing plants and machinery in 21 ‘backward’ districts of Bihar.
In order to give boost to economy and to attract new manufacturing units in 21 backward districts of Bihar Finance Ministry announced this special concession for five years under section 32 of the IT Act.
30 per cent income tax rebate:
- As per Finance Ministry notification 15 per cent additional depreciation on previous 20 per cent and 15 per cent investment allowance for new plant and machinery on previous 15 per cent will be added under section 32 of the IT Act.
- This altogether sum up 30 per cent tax rebate on income tax which will be applicable to new enterprises on the cost of their plant and machinery acquired and installed during the period from April 2015 to March 2020.
It should be noted that this is second major announcement by Centre followed by Rs 1.25 lakh crore package announced earlier to Bihar.
Note: The said section 32AD was first “inserted” in the I-T Act in the Finance Bill, 2015 in order to provide incentive and economic boost to the newly bifurcated states of Andhra Pradesh and Telangana.
The notified 21 Districts are:
The notified districts include Patna, Nalanda, Bhojpur, Rohtas, Kaimur, Gaya, Jehanabad, Aurangabad, Nawada, Vaishali, Sheohar, Samastipur, Darbhanga, Madhubani, Purnea, Katihar, Araria, Jamui, Lakhisarai, Supaul and Muzaffarpur