Certain districts of Bihar notified as backward areas under the first proviso to section 32(1)(iia) and section 32AD(1) [Notification No. 71/2015, dated 17.8.2015] :
In order to encourage the setting up of industrial undertakings in the backward areas of the States of Andhra Pradesh, Bihar, Telangana and West Bengal, section 32AD(1) provides for a deduction of an amount equal to 15% of the actual cost of new plant and machinery acquired and installed in the assessment year relevant to the previous year in which such plant and machinery is installed, if the following conditions are satisfied by the assessee–
(a) the assessee sets up an undertaking or enterprise for manufacture or production of any article or thing on or after 1st April, 2015 in any backward area notified by the Central Government in the State of Andhra Pradesh or Bihar or Telangana or West Bengal; and
(b) the assessee acquires and installs new plant and machinery for the purposes of the said undertaking or enterprise during the period between 1st April, 2015 and 31st March, 2020 in the said backward areas.
Further, in order to encourage acquisition and installation of plant and machinery for setting up of manufacturing units in the notified backward areas of the States of Andhra Pradesh, Bihar, Telangana and West Bengal, first proviso has been inserted to section 32(1)(iia) to allow higher additional depreciation at the rate of 35% (instead of 20%) in respect of the actual cost of new machinery or plant (other than a ship and aircraft) acquired and installed during the period between 1st April, 2015 and 31st March, 2020 by a manufacturing undertaking or enterprise which is set up in the notified backward areas of these specified States on or after 1st April, 2015.
Accordingly, the Central Government has, vide this notification, notified the following 21 districts of the State of Bihar as backward areas under the first proviso to section 32(1)(iia) and section 32AD(1): –
| S. No. | District | S. No. | District |
| 1. | Patna | 12. | Samastipur |
| 2. | Nalanda | 13. | Darbhanga |
| 3. | Bhojpur | 14. | Madhubani |
| 4. | Rohtas
|
15. | Purnea |
| 5. | Kaimur | 16. | Katihar |
| 6. | Gaya | 17. | Araria |
| 7. | Jehanabad | 18. | Jamui |
| 8. | Aurangabad | 19. | Lakhisarai |
| 9. | Nawada | 20. | Supaul |
| 10. | Vaishali | 21. | Muzaffarpur
|
| 11. | Sheohar |