Any assesse i.e. Company or non – corporates

Deduction @ 15% of the actual cost of the new asset installed.

For the purposes of this section, "new asset" means any new plant or machinery (other than a ship or aircraft) but does not include—

(a) any plant or machinery, which before its installation by the assessee, was used either within or outside India by any other person;

(b) any plant or machinery installed in any office premises or any residential accommodation, including accommodation in the nature of a guest house;

(c) any office appliances including computers or computer software;

(d) any vehicle; or

(e) any plant or machinery, the whole of the actual cost of which is allowed as deduction (whether by way of depreciation or otherwise) in computing the income chargeable under the head D.—"Profits and gains of business or profession" of any previous year.'.

Assessee should set up an undertaking for manufacturing or production of any article or thing on or after 01-04-2015 and ending before the 1st day of April, 2020

Undertaking should be set up in any notified backward area in the state of Andhra Pradesh or Bihar or Telangana or West Bengal.

Actual cost shall be computedas per section 43(1).

i) deduction shall be available in the year in which asset is installed.

ii) If new asset acquired and installed is sold or otherwise transferred, within a period of five years from the date of its installation, the amount of deduction allowed shall be deemed to be the income of assesse chargeable under the head PGBP.

iii) This deduction is in addition to the depreciation and additional depreciation.

iv) This deduction shall be available on computers if computers are integral part of production system.

v) This deduction shall not be reduced from the WDV of the block of asset.

vi) This deduction is not available to power generating units.

vii) This deduction shall not be restricted to 50% if plant and machinery purchased and installed is used for less than 180 days during the previous year.