The Income Tax Department has rolled out a slew of tax benefits for 21 Bihar districts to bolster faster growth in the notified backward areas.
The shortlisted 21 districts of Bihar are eligible for 15 percent additional depreciation under Section 32(1)(iia) and 15 percent investment allowance under section 32 AD of the Income Tax act, the Income Tax Department said in a statement on Wednesday.
Manufacturing undertakings/enterprises in these districts will be eligible for 35 percent additional depreciation instead of 25 percent, which would be over and above the normal 15 percent.
Also, manufacturing companies will be eligible for 30 percent investment allowance instead of 15 percent, if their investment in new plant and machinery exceeds Rs.25 crore.
The tax benefits apply for manufacturing enterprises/undertakings, set up from April, 2015 to March, 2020, the statement added.
The 21 districts are Patna, Nalanda, Bhojpur, Rohtas, Kaimur, Gaya, Jehanabad, Aurangabad, Nawada, Vaishali, Sheohar, Samastipur, Darbhanga, Madhubani, Purnea, Katihar, Araria, Jamui, Lakhisarai, Supaul and Muzaffarpur.
The tax benefits are a manifestation of the amendment of Income Tax Act 1961 through the Finance Act 2015 meant for providing tax benefits to notified backward areas in specified states.