INTRODUCTION
Industrial Undertakings in the North-Eastern Region The north-eastern region of India comprises eight states with significant potential for industrial growth. To encourage and promote industrialization, the government has implemented special measures. Industrial Undertakings in the North-Eastern Region The North-East Industrial and Investment Promotion Policy (NEIIPP) of 2007 outlines specific provisions for certain industrial undertakings aimed at boosting industrialization, generating employment opportunities, and uplifting the socio-economic conditions in the region.
NEIIPP offers various incentives, including capital investment subsidies, interest subsidies, exemption from central excise duty, exemption from income tax, and more, to eligible industrial units. Industrial Undertakings in the North-Eastern Region These units include newly established industrial units, existing units undergoing substantial expansion, and those undergoing modernization and technology upgradation. The incentives provided under NEIIPP are zone-specific and vary according to the sector. Industrial Undertakings in the North-Eastern Region Eligible sectors for incentives under NEIIPP include agro-based industries, food processing industries, pharmaceuticals, tourism, and handicrafts.
NEIIPP has established Industrial Growth Centers (IGCs) throughout the region, providing infrastructure facilities such as land, power, water supply, communication facilities, and more to the industrial units. Industrial Undertakings in the North-Eastern Region Industrial Undertakings in the North-Eastern Region The IGCs also have a Common Facility Center, offering common services such as testing, quality control, and marketing support to the industrial units.
Industrial Undertakings in the North-Eastern Region Another government initiative aimed at promoting industrial development in the region is the North-East Region Textile Promotion Scheme (NERTPS). This scheme provides financial assistance for setting up textile units in the region.
Industrial Undertakings in the North-Eastern Region The special provisions regarding certain industrial undertakings in the north-eastern region are intended to foster industrialization and improve the socio-economic conditions in the area. These incentives have attracted investments and created employment opportunities, which will help ensure balanced regional development in India. Industrial Undertakings in the North-Eastern Region The government’s emphasis on industrial growth in the north-eastern region is a positive step towards a prosperous future for the area.
Section 10c of income tax act, 1961: Industrial Undertakings in the North-Eastern Region
(1) issue to the provisions of this section, any profits and gains derived via an assessee from an industrial undertaking, which has started or starts to manufacture or produce any article or component on or after the 1st day of april, 1998 in any included infrastructure development centre or commercial increase centre placed in the north-Eastern Region (hereafter on this phase called the industrial undertaking) shall no longer be included in the overall earnings of the assessee.
(2) This section applies to any business undertaking which fulfils all of the following situations, specifically :—
(i) it is not shaped via the splitting up, or the reconstruction of, a enterprise already in life :
Provided that this situation shall now not follow in recognize of any business venture that’s fashioned due to the re-establishment, reconstruction or revival by way of the assessee of the commercial enterprise of such a business assignment as is stated in Section 33B, inside the occasions and in the duration laid out in that section.
(ii) it is not fashioned by means of the transfer to a new enterprise of equipment or plant formerly used for any motive.
Explanation.—The provisions of rationalisation 1 and explanation 2 to sub-phase (three) of segment 80-IA shall practise for the purposes of clause (ii) of this subsection as they follow for the functions of clause (ii) of that sub-phase.
(three) the profits and gains mentioned in sub-phase (1) shall not be protected within the general profits of the assessee in admire of ten consecutive evaluation years beginning with the evaluation 12 months applicable to the preceding year in which the industrial mission starts off evolved to manufacture or produce articles or things.
(four) notwithstanding something contained in some other provision of this act, in computing the overall income of the assessee of any previous yr applicable to any next evaluation year,—
(i) Section 32, section 35 and clause (ix) of sub-section (1) of section 36 shall practise as though deduction cited therein and relating to or allowable for any of the relevant evaluation years, when it comes to any building, equipment, plant or furnishings used for the purposes of the business of the industrial venture inside the preceding
yr applicable to such assessment 12 months or any expenditure incurred for the functions of such commercial enterprise in such preceding 12 months were given full impact to for that evaluation 12 months itself and, consequently, sub-phase (2) of section 32, sub-section (4) of section 35 or the second proviso to clause (ix) of sub-phase (1) of section 36, as the case may be, shall no longer observe on the subject of one of these deduction;
(ii) no loss cited in sub-phase (1) of section seventy two or sub-section (1) or sub-section (three) of section seventy four, in to date as such loss relates to the enterprise of the economic mission, will be carried ahead or activate where such loss pertains to any of the relevant assessment years;
(iii) no deduction will be allowed underneath phase 80hh or segment 80 hha or segment 80I or section 80-IA or phase 80-IB or section 80JJA when it comes to the income and gains of the industrial undertakings; and
(iv) In computing the depreciation allowance beneath Section 32, the written down value of any asset used for the functions of the business of the commercial task will be computed as though the assessee had claimed and been in reality allowed the deduction in recognize of depreciation for each of the relevant assessment years.
(5) the provisions of sub-section (8) and sub-section (10) of phase 80-IA shall, thus far as can be, follow with regards to the economic undertaking cited in this segment as they apply for the purposes of the commercial undertaking noted in segment 80-ia or segment 80 -IB, as the case may be.
(6) however whatever contained in the foregoing provisions of this section, in which the assessee before the due date for furnishing the return of his income below sub-phase (1) of segment 139, furnishes to the assessing officer a announcement in writing that the provisions of this section won’t be made relevant to him, the provisions of this segment shall no longer apply to him in any of the relevant evaluation years :
Conclusion:-
In conclusion, the special provisions for industrial undertakings in the north-eastern region signify the government’s commitment to fostering economic development and creating a conducive environment for industrial growth. By providing incentives and infrastructure support, these measures aim to unlock the region’s potential and contribute to its overall prosperity.
SOURCES: https://mdoner.gov.in/
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