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Section 32AD investment allowance was for new plant in backward areas of:
AOnly North East
BAll states
COnly Himalayan states (per relevant Section) (per relevant Section)
DAP, Bihar, Telangana, West Bengal (per relevant Section)
Answer & Solution
Correct answer: D. AP, Bihar, Telangana, West Bengal (per relevant Section)
1. Section 32AD special allowance for new plant/machinery in notified backward areas of AP, Bihar, Telangana, West Bengal.
2. Allowance was 15% of cost (in addition to depreciation).
3. Investment had to be made before 1 April 2020; effectively expired.
_Source: ICAI BoS CA Final Paper 7, Ch 3 "Profits and Gains of Business or Profession"_
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