Things seem to be looking up for the citizens of Andhra Pradesh, especially after the Central Government finally decided to extend tax incentives for seven districts in Andhra Pradesh to boost industrial activity. This includes four districts of Rayalaseema and three districts of North coastal region of the state under the Andhra Pradesh Re-organisation Act, 2014. A tad late because this provision has come three years after the bifurcation.
The seven districts of Andhra Pradesh notified as backward areas are -- Anantapur, Chittoor, Cuddapah, Kurnool, Srikakulam, Vishakhapatnam and Vizianagaram. These incentives are in addition to other tax benefits available under the Income-Tax Act. With tax incentives coming to these districts, they could get a much needed facelift. Industries and manufacturing units will give jobs to the people within this region, apart from giving a much needed monetary incentive to these districts.
The Central Board of Direct Taxes (CBDT) has announced that these seven districts can avail tax incentives under section 32(1)(ii)(a) and section 32AD of the Income-Tax Act. This means that any manufacturer setting up a manufacturing unit during the period of April 1, 2015 to March 31, 2020 in these districts of Andhra Pradesh is eligible for 15 per cent of higher additional depreciation and 15 per cent of investment allowance on the cost of plant and machinery acquired by it during the said period, noted a statement made by the Finance Ministry.
While the residual state of Andhra Pradesh and its Opposition members cried themselves hoarse asking for special category status for the state, after much dilly-dallying the Centre announced a financial package for Andhra Pradesh that includes full funding of Polavaram irrigation project, tax concessions and a special assistance.