The Union Government has extended tax incentives for nine backward districts of Telangana, except Hyderabad, as promised under the Andhra Pradesh State Reorganisation Act.
The Central Board of Direct Taxes, Department of Revenue, Ministry of Finance has notified that in exercise of the powers conferred by Section 32 and Section 32 AD of the Income Tax Act 1961 (43 of 1961), the Central Government notified the nine districts of Telangana as backward areas under the said Act.
Thus nine out of 10 districts of Telangana - Adilabad, Nizamabad, Karimnagar, Warangal, Medak, Mahbubnagar, Rangareddy, Nalgonda and Khammam - will be eligible for the tax incentives announced by the Centre, according to a release from the Industry and Commerce Department.
The manufacturing units which are set up between April 1, 2015 to March 31, 2020 will be eligible for tax incentives like additional depreciation and investment allowance under the provisions of the Act. The Centre on Friday notified similar tax concessions for seven backward districts, three North Andhra districts and four Rayalaseema districts out of 13 districts in Andhra Pradesh.
