| |
IT sops for core sector industries
ENS ECONOMIC BUREAU
NEW DELHI, MARCH 30: The Lok Sabha has passed amendments in the Income Tax Act to extend tax concessions to the industries in the infrastructure sector which include power, road, highway, bridge, airport, port, rail system, water supply, irrigation, sanitation and sewerage system.The amendments, which replace the Ordinance promulgated in December last year, will enable power generating units to depreciate their capital assets in a straightline method at the same rate at which it is reimbursed by the state electricity board under the Electricity (Supply) Act 1948. With the amendment, there will be lower tax reimbursement by the state electricity board, consequently, a lower power tariff. Earlier, the basis on which depreciation was to be claimed by an assessee was the written down method of depreciation. Section 32 of the Act did not provide for straightline method of depreciation. The amendments in Section 80-IA of the Act seek to provide incentive to mineral oil, power, highway projects and undertakingslocated in backward districts of the country. It has been proposed to extend the benefit of deduction available to infrastructure facility to housing and other development activities which are an integral part of highway project. The time limit for availing tax holiday has been extended from 12 years to 20 years in respect of highway and expressway projects. The amendments under Section 80-IA also propose to extend the cut off date for availing tax benefit by undertakings which generate or generates and distributes power from March 31, 1998 to March 31, 2000. It also seeks to provide a five-year tax holiday to undertakings located in the notified industrially backward districts. Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
|
 |
