Home » Budget provides 15% allowance for over Rs 100 cr investment

Budget provides 15% allowance for over Rs 100 cr investment

Budget provides 15% allowance for over Rs 100 cr investment

The Budget 2013-14 provides 15 per cent investment allowance on investment of more than Rs 100 crore in plant and machinery. Concessional rate of tax of 15 per cent on dividend received from its foreign subsidiary by a company continued for one more year. The Finance Bill 2013-14 proposes 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, the Finance Minister P Chidambram said that no large economy can become truly developed without a robust manufacturing sector.

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. 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.

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