Tax Break For Rubber, Plantations

The government was planning to extend the facility of Section 33AB under Income Tax Act (ITA) to natural rubber. The finance ministry was also planning to extend the low interest rate facility for working capital loan to plantations along with making available benefits such as duty drawbacks and clearance of tea meant for exports without payment of duty, continuation of the facility of CENVAT to the new additional duty levied in the 2003-04 budget.

Under Section 33AB of ITA, 40 per cent of the profits accrued by a company could be deposited with NABARD and withdrawn later for factory development and improvement.