Are there any tax benefits for investments made in rural areas or for specific industries?
Curious about tax savings
Yes, there are certain tax benefits for investments made in rural areas and for specific industries in India.
Under Section 35AD of the Income Tax Act, 1961, businesses engaged in certain specified activities in specified areas are eligible for a deduction of 100% of the capital expenditure incurred in such businesses. Some of the specified activities include the setting up of a cold chain facility, warehousing for storage of agricultural produce, construction and maintenance of affordable housing, and the establishment of a hospital in a rural area.
Additionally, under Section 80IAC of the Income Tax Act, eligible startups in the technology sector can claim a tax holiday for a period of 3 consecutive years out of their first 10 years of operation.
There are also other schemes and incentives available for investments in certain areas or industries, such as the North East Industrial and Investment Promotion Policy (NEIIPP) and the Special Economic Zone (SEZ) scheme. It is recommended to consult with a financial advisor or tax consultant for specific details and eligibility criteria for these schemes.