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Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes

NOTIFICATION

Dated: The 17th August, 2015

INCOME-TAX

S.O.(E) – In exercise of the powers conferred by section 32 and section 32AD of the Income Tax Act, 1961 (43 of 1961), the Central Government hereby notifies the following districts of the State of Bihar as backward areas under the first proviso to clause (iia) of sub-section (1) of section 32 and sub section (1) of section 32AD, namely-

1. Patna
2. Nalanda
3. Bhojpur
4. Rohtas
5. Kaimur
6. Gaya
7. Jehanabad
8. Aurangabad
9. Nawada
10. Vaishali
11. Sheodhar
12. Samastipur
13. Darbhanga
14. Madhubani
15. Purena
16. Katihar
17. Araria
18. Jamui
19. Lakhisarai
20. Supual
21. Muzaffarpur

2. This notification shall come into force on the date of its publication in the Official Gazette

Notification No. 71/2015/F. No. 142/13/2015-TPL]

Rajesh Kumar Bhoot
Director (Tax Policy & Legislation0

-----End of Notification ----

ABCAUS Note:

1.       The newly inserted proviso to clause (iia) to sub section (1) of section 32 reads as under:

Provided   that where an assessee, sets up an undertaking or enterprise for manufacture or production of any article or thing, on or after the 1st day of April, 2015 in any backward area notified by the Central Government in this behalf, in the State of Andhra Pradesh or in the State of Bihar or in the State of Telangana or in the State of West Bengal, and acquires and installs any new machinery or plant (other than ships and aircraft) for the purposes of the said undertaking or enterprise during the period beginning on the 1st day of April, 2015 and ending before the 1st day of April, 2020 in the said backward area, then, the provisions of clause ( iia )   shall have effect, as if for the words "twenty per cent", the words "thirty-five per cent" had been substituted.

2.    Finance Act, 2015 has inserted a new section 32AD providing deductions for Investment in new plant or machinery in notified backward areas in certain State.

       The sub section (1) reads as under:

  Where an assessee, sets up an undertaking or enterprise for manufacture or production of any article or thing, on or after the 1st day of April, 2015 in any backward area notified by the Central Government in this behalf, in the State of Andhra Pradesh or in the State of Bihar or in the State of Telangana or in the State of West Bengal, and acquires and installs any new asset for the purposes of the said undertaking or enterprise during the period beginning on the 1st day of April, 2015 and ending before the 1st day of April, 2020 in the said backward area, then, there shall be allowed a deduction of a sum equal to fifteen per cent of the actual cost of such new asset for the assessment year relevant to the previous year in which such new asset is installed.

CBDT Notification-21 Districts of Bihar Declared Backwards Areas for the Higher Income-tax Depreciation/Deduction Benefits under Section 32 and 32AD |18-08-2015|