Live
- Bathukamma Celebrations at the Animal Husbandry Department Office
- ‘Bhool Bhulaiyaa 3’ trailer: This time Rooh Baba has double trouble
- ‘Pranam Kanna’ from ‘Love Reddy’ strikes an emotional chord
- Gopichand talks about ‘Viswam;’ describes as perfect festival film
- Pragya exudes effortless charm
- India to become global leader in biopharmaceuticals, bio-manufacturing by 2030: Jitendra Singh
- India’s GDP may surprise this year again to stay significantly above 7 pc: PHDCCI
- YS Jagan meets party leaders, says problems are common in opposition
- Six injured in stabbing attack in Israel: Police
- Iraqi militant group claims four drone attacks in Israel
Benefits under Special category status
The central government offers a host of tax benefits for the new industrial units set up in the special category States.
As many as 11 States have been given special category status since 1967. They include Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Jammu & Kashmir, Himachal Pradesh, and Uttarakhand. They enjoy several benefits.
Financial benefits
* The central government allocates 30 per cent of its plan expenditure to these States while the remaining 70 per cent goes to other States.
* In the case of the centrally-sponsored schemes (CSS) and external aid, special category States get 90 per cent as grant and 10 per cent as loan. For general category States, it is 30 per cent grant and 70 per cent loan.
* Unspent funds don’t lapse and get carried forward in the case of special category States while they lapse in the case of non-special category States.
Tax benefits
The central government offers a host of tax benefits for the new industrial units set up in the special category States. They include capital investment subsidy, income tax exemption for five years, interest subsidy, comprehensive insurance subsidy, central excise duty exemption and transport subsidy.
These tax exemptions and investment subsidies are the main reason why industrialists are flocking to the special category States and setting up industrial units even in hilly areas.
