Tax exempted industrial park scheme extended to 31 March 2011

24 May 2010

The Central Board of Direct Taxes (CBDT) has amended the Industrial Park Scheme 2008 and Rule 18C of the Income Tax Rules, 1962 to give effect to the extension of the ending date of operation of the scheme to 31 March 2011.

Under the industrial park scheme 2008, an undertaking notified under rule 18C of the Income Tax Rules, 1962, those entities that begin to develop and operate or maintain an industrial park any time during the period beginning 1 April 2006 and ending 31 March 2009, afre entitled to benefits under section 80IA(4)(iii) of the Income Tax Act, 1961.

The Finance Act (No.2) 2009 had extended the ending date of the scheme from 31 March 2009 to 31 March 2011.

However, to be eligible for I-T benefits, the undertaking and the industrial park should be notified by the central government under the industrial park scheme, 2008.

The undertaking should also continue to fulfill the conditions envisaged in the Industrial Park Scheme, 2008.