Working at Private Company
8637 Points
Joined December 2011
Yes, an already incorporated company can claim investment-linked tax incentives under Section 35AD for setting up a new manufacturing unit in another state. Section 35AD provides for a deduction of 100% of the capital expenditure incurred in the setting up of a new manufacturing unit, subject to certain conditions. The deduction can be claimed in the year in which the asset is put to use.
In addition to the investment-linked tax incentives under Section 35AD, a new factory unit can also claim other benefits
1. Deduction of Depreciation
2. Deduction of Expense of setting up
3. Deduction of Interest on Loan
4. Reduced Rate of Taxes
5. Deduction of Loss with certain conditions