Capital expenditure on warehousing for agricultural produce, oil and gas pipeline on common carrier allowable as deduction

The Finance Minister Shri Pranab Mukherjee proposed in the General Budget today, to fully allow all capital expenditure as deduction under the Income Tax Act in respect of businesses of setting up and operating cold chain, warehousing facilities for storing agricultural produce and operating cross-country natural gas or crude or petroleum pipeline network for distribution on common carrier principle. This, however, will not include expenditure on land, goodwill and financial instruments.

This incentive, Shri Mukherjee said is proposed to incentivize businesses by providing investment-linked tax exemptions. Under the present scheme of the Income Tax Act, tax exemptions are largely profit-linked.

Source : Equity Bulls

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