Budget: 15% investment allowance for manufacturing cos – indiablooms

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India Blooms News Service

New Delhi, Feb 28 (IBNS) The Finance Bill 2013-14 has proposed an investment allowance at the rate of 15 per cent to a manufacturing company that invests more than Rs.100 crore in plant and machinery during the period April 1, 2013 to March 31, 2015.

Presenting the Union Budget in the Lok Sabha on Thursday, Union Finance Minister P.Chidambaram said that no large economy can become truly developed without a robust manufacturing sector.

He also propsed to extend the ‘Eligible Date’ for projects in the power sector to avail of the benefit under Section 80-IA of the Income Tax Act from March 31, 2013 to March 31, 2014.

Chidambaram also announced that the concessional rate of tax of 15 per cent on dividend received by an Indian company from its foreign subsidiary shall be continued for one more year. This will encourage repatriation of funds from overseas companies.

Further, the Indian company shall not be liable to pay dividend distribution tax on the distribution to its shareholders of that portion of the income received from its foreign subsidiary.