Our readers are aware that the other day, the Central Board of Direct Taxes (CBDT) had notified incentives like 15 percent additional depreciation for the first year and 15% investment allowance (in new plant and machinery to the Seven Backward Districts of Andhra Pradesh under Income Tax Act. Anantapur, Chittoor, Cuddapah, Kurnool, Srikakulam, Vishakapatnam and Vizianagaram districts will entail the benefits.
[m9ad]
And now, the Center had extended the same incentives to the backward districts of Telangana as well. Telangana has benefitted more from these incentives as they are extended to all the districts of the state except Hyderabad will be benefitting from that. Even a developed district like Ranga Reddy also managed to sneak in, much to the delight of the state government.
It will be applicable for the period of April 1st, 2015 to March 31st, 2020. On the other side, financial experts say these incentives will be of no great use to either of the states. They say the new industries would not have much issues with Income Tax and will be looking at benefits in other taxes levied by the state and central governments.
