The Direct Taxes Code (DTC) Bill, to be considered by the Cabinet Committee of Economic Affairs on Thursday, is likely to include a provision exempting investors in the National Manufacturing and Investment Zones (NMIZs) from capital gains tax on sale of plant and machinery in existing facilities before relocating in the zones.
“We are hopeful that the DTC Bill to be taken up by the CCEA would include the special dispensation for NMIZ units as we had announced the policy after discussion with all ministries concerned including the Finance Ministry,” an Industry Department official told Business Line .
Commerce and Industry Minister Anand Sharma had given a reminder to the Revenue Department in a meeting of the Manufacturing Industry Promotion Board last month asking it to ensure that the dispensation pertaining to relief from capital gains tax as approved in the NMP, is included in the Direct Tax Code Bill.
Norms notified
The Commerce and Industry Ministry had notified norms for setting up NMIZs in June last with a number of incentives including exemption from capital gains tax.