The Central Board of Direct Taxes has notified amendments to the Industrial Park Scheme 2008 under sub-section (4) of section 80IA of the Income Tax Act, 1961 on 2nd July 2008. According to the amended scheme, the ambit of "industrial activity" has been expanded to include (i) research and experimental development on natural sciences and engineering as defined in section K, division 73, group 731 of the National Industrial Classification, 2004 Code, issued by the Central Statistical Organisation, Department of Statistics; (ii) development of computer software; and (iii) information technology enabled services as notified vide notification number S.O. 890(E), dated the 26th September 2000 for the purposes of sections 10A, 10B and 80HHE of the Income Tax Act, 1961.

The minimum constructed floor area has been reduced to 15,000 square meters (from the earlier 50,000 square meters); the area allocated or to be allocated to industrial units has been reduced to 75% of the allocable area (from earlier 90%); and provision has been made to allocate area for commercial activity with a cap of 10% of the allocable area. The original scheme was notified on 8th January 2008.

 

 

>>>	Income Tax - Notification No. 76/2008-Alldated -02-07-2008
	Amendments to the Industrial Park Scheme, 2008

Industrial Park Scheme expansion broadens qualifying activities, eases area requirements and allows limited commercial allocation. Amendment expands the scope of the Industrial Park Scheme to include research and experimental development in natural sciences and engineering, computer software development and information technology enabled services. It also reduces the minimum constructed floor area requirement, lowers the required proportion of allocable area for industrial units and permits a capped allocation for commercial activity, thereby altering eligibility and layout conditions for parks under section 80IA.