TaxTMI 
TaxTMI 
Question- What are the incentives in Finance Bill 2015 for the State of Andhra Pradesh and the State of Telangana?
Incentives for the State of Andhra Pradesh and the State of Telengana
28 Feb 2015 
1 Reply 
5553 Views Asked by
Additional Investment Allowance and enhanced additional depreciation promote manufacturing investment in notified backward areas with transfer limits.
Targeted income tax incentives for notified backward areas of Andhra Pradesh and Telangana create an Additional Investment Allowance equal to fifteen percent of the cost of specified new plant and machinery for manufacturing undertakings set up in those areas, with the term "new asset" narrowly defined and a five year transfer restriction (subject to amalgamation/demerger exceptions). Concurrently, the proposal increases the concessional Additional Depreciation rate for qualifying new plant and machinery (excluding ships and aircraft), to be available over and above general depreciation and subject to existing short use restrictions and consequential timing adjustments. (AI Summary)
Targeted income tax incentives for notified backward areas of Andhra Pradesh and Telangana create an Additional Investment Allowance equal to fifteen percent of the cost of specified new plant and machinery for manufacturing undertakings set up in those areas, with the term "new asset" narrowly defined and a five year transfer restriction (subject to amalgamation/demerger exceptions). Concurrently, the proposal increases the concessional Additional Depreciation rate for qualifying new plant and machinery (excluding ships and aircraft), to be available over and above general depreciation and subject to existing short use restrictions and consequential timing adjustments. (AI Summary)