tax exemption
Querist : Anonymous
The link shows that five years exemption to fruits and vegetable processing industry. i need to know abt food grains processing
Querist : Anonymous
Querist : Anonymous
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### 1. **Is tax exemption available for food processing industry?**
Yes, under certain conditions, **income tax exemptions or incentives are available for food processing units**.
---
### 2. **Section applicable for exemption:**
* **Section 80-IB(9)** of the Income Tax Act provides **tax incentives for industrial undertakings engaged in the processing of fruits and vegetables**.
* This section grants **100% deduction of profits for 5 consecutive assessment years** out of 10 years from the commencement of production, applicable to fruits and vegetable processing units.
---
### 3. **What about food grains processing?**
* Unfortunately, **Section 80-IB(9) specifically covers only fruits and vegetable processing industries**.
* For **food grains processing units** (like rice mills, wheat mills, etc.), **there is no specific income tax exemption under Section 80-IB(9)**.
* They are treated as regular industrial units for income tax purposes.
---
### 4. **Other possible benefits for food grains processing units:**
* **Section 80-IA** may provide exemption for certain infrastructure projects but **not applicable for food grain processing**.
* There may be **state-level incentives** (like subsidies, concessional power rates) depending on your state government policies for agro or food processing industries.
* Some **capital investment subsidy schemes** or **technology upgradation benefits** may be available from central/state governments.
* You may also explore benefits under the **Income Tax Act for new industrial undertakings** (Section 80-IB(1) to 80-IB(8)) but generally, rice mills are not covered.
---
### 5. **Summary:**
| Industry | Income Tax Exemption under IT Act |
| ---------------------------------------- | ------------------------------------------------------ |
| Fruits and vegetable processing | Yes, 100% deduction for 5 years under Section 80-IB(9) |
| Food grains processing (e.g., rice mill) | No specific exemption under Income Tax Act |
---
### 6. **Recommendation:**
* Check with your **state’s food processing development authority** or **industrial department** for state-specific incentives.
* Also consider GST benefits, subsidies, or other non-income tax incentives available for your sector.
---
If you want, I can help you find specific state incentives or other schemes applicable to rice mills and food grains processing industries. Would you like that?
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