Under
the Andhra Pradesh Re-organisation Act, 2014 the Government of India is
extending special assistance to four districts of Rayalseema and three
districts of North coastal Region of Andhra Pradesh. To further boost the
industrial activities, the CBDT has notified these seven districts for availing
tax incentives under section 32(1)(iia) and section 32AD of the Income-tax
Act.
Accordingly, any
manufacturing undertaking set up during the period from 01.04.2015 to
31.03.2020 in these districts of Andhra Pradesh is eligible for 15% of higher additional
depreciation and 15% of investment allowance on the cost of plant
and machinery acquired by it during the said period.
The 7 districts
of Andhra Pradesh notified as backward areas vide Notification in S.O.3075 (E)
dated 28.09.2016 are:
1. Anantapur
2. Chittoor
3. Cuddapah
4. Kurnool
5. Srikakulam
6.
Vishakhapatnam
7.
Vizianagaram
The aforesaid
incentives are in addition to other tax benefits available under the Income-tax
Act. The above Notification is available on the website incometaxindia.gov.in.
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DSM/KA