India Proposes Agri-Industry Tax Break

NEW DELHI - Jul 8/04 - SNS -- New agri-industry companies will receive major tax concessions under the budget presented to Parliament by the Finance Minister, Shri P. Chidambaram.

It proposes to provide 100% deduction under Section 80-1B for 5 years and 25% deduction for the next 5 years from profits derived by undertakings engaged in processing, preservation and packaging of fruits and vegetables.

The deduction will be available from the assessment year relevant to the previous year in which the undertaking starts such business. The new provision will come into effect from April 1, 2005 and will apply in relation to assessment year 2005-06.

As per the existing provision of Section 80-1B, deduction is only available in respect of profits and gains of undertakings engaged in refining or production of mineral oil, undertakings engaged in developing and building housing projects and those engaged in integrated business of handling, storage and transportation of foodgrains.

Subscribers can read the full text of the article by Clicking here