Lok Sabha Question No. 4969 (UNSTARRED), answered on 2017-03-31
Subject: Tax Incentives to Andhra Pradesh
Ministry: FINANCE
Asked by: SRIRAM MALYADRI

## (a) to (e):

There  is  no  proposal  under  consideration  to  provide  any  Central  Excise  or  Customs  duty exemption/Incentive which is specific to the state of Andhra Pradesh as such. Further no such exemption or incentive has been granted specifically to the state of Andhra Pradesh.

Further, to provide relief to an individual or Hindu undivided family who was the owner of land as on 2 nd June, 2014, and has transferred such land for the development of capital city of Amravati under the land  pooling  scheme  notified  under  the  provisions  of  Andhra  Pradesh  Capital  Region  Development Authority Act, 2014, it has been proposed to amend the provisions of the Income-tax Act, 1961 (the Act) so as to provide that capital gains arising from following transfer shall not be chargeable to tax under the Act:

- (i) Transfer of capital asset being land or building or both, under land pooling scheme.
- (ii) Sale of LPOCs by the said persons received in lieu of land transferred under the scheme.
- (iii)  Sale of reconstituted plot or land by said persons within two years from the end of the financial year in which the possession of such plot or land was handed over to the said persons.

It  has  also  been  proposed  to  provide  that  where  reconstituted  plot  or  land,  received  under  land pooling scheme is transferred after the expiry of two years from the end of the financial year in which the possession of such plot or land was handed over, the cost of acquisition of such plot or land shall be deemed to be its stamp duty value on the last day of the second financial year after the end of financial year in which the possession of such asset was handed over to the assessee.

## Government of India Ministry of Finance Department of Revenue

## LOK SABHA UNSTARRED QUESTION NO.  4969

TO BE ANSWERED ON FRIDAY, MARCH 31, 2017 CHAITRA 10, 1939 (SAKA)

## TAX INCENTIVES TO ANDHRA PRADESH

## 4969: SHRI MALYADRI SRIRAM:

Will the Minister of Finance be pleased to state:

- (a)  whether the Government proposes to provide any tax incentives to the Andhra Pradesh;
- (b) if so, the details thereof including tax incentives already provided;
- (c) whether the proposed tax incentives are in conformity with the special package granted to the State of Andhra Pradesh;
- (d) if so, the details thereof; and
- (e) if  not,  the  tax  incentives  proposed  to  be  provided  under  the  special  package  compared  with  tax incentives already provided to the State?

## ANSWER MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI SANTOSH KUMAR GANGWAR)

In order to encourage setting up of industrial undertakings in certain notified backward areas of Andhra  Pradesh,  the  Finance  Act,  2015  vide  sections  10  and  11  inter  alia  provided  certain  direct  tax incentives such as additional investment allowance (15%) and higher additional depreciation (20%) under Section 32AD and 32(1) (iia) respectively of the Income-tax Act, 1961. This higher additional depreciation and additional investment allowance are available in respect of new specified machinery or plant acquired and installed by a manufacturing undertaking or enterprise which is set up in the notified backward area of specified States on or after the 1 st day of April, 2015. These tax incentives are available during the period beginning on the 1 st day of April, 2015 and ending before the 1 st day of April, 2020.

Accordingly  seven  districts  of  Andhra  Pradesh  have  been  notified  as  backward  areas  vide Notification number S.O. 3075(E) 28 th September, 2016 to avail these direct tax benefits.

*****