Ten-year tax holiday for industrial park developers

The Finance Ministry on Thursday announced a ten-year income-tax holiday to developers of industrial parks set up during April 1, 2006, to March 31, 2009. The incentive is aimed at boosting the country’s industrial infrastructure. According to the Industrial Park Scheme 2008 notified by the Central Board of Direct Taxes (CBDT) here, the industrial park developers will be eligible for 100 per cent tax deduction which is to be provided for ten consecutive assessment years out of 15 years after the commencement of operations of such units. The developers of such industrial parks will be free to choose the ten consecutive years for the purpose of availing themselves of the tax holiday. A similar tax rebate scheme, announced in 2002, had lapsed in 2006. Under the current scheme, an industrial park should have at least 30 units. However, all units of a person and his associated enterprises would be treated as a single unit. To avail of the tax benefit, the industrial park will have to be owned by a single undertaking. The area allocated or to be allocated to industrial units, the notification said, will have to be at least 90 per cent of the allocable area. Ministry sources clarified that such industrial parks developed, operated or maintained during 2006-07 would have 2007-08 as the tax assessment year and must have filed tax returns by now – www.thehindu.com