10-year tax holiday for NE States

NEW DELHI, March 1— Government will grant a ten year tax holiday for industries in Himachal Pradesh, Sikkim, Uttranchal and the North-eastern States to boost their economic development, reports PTI. Union Budget proposes to insert a new section 80-IC for this to allow a deduction for ten years from the profits of new undertakings or enterprises or existing undertakings or enterprises on their substantial expansion in these States. Substantial expansion for this purpose has been defined as an increase in investment in plant and machinery by at least 50 per cent of the book value of the plant and machinery (before taking depreciation in any year) as on the first day of the previous year in which the substantial expansion is undertaken.