What taxation benefits apply to land within the designated industrial corridor?

Taxation benefits offered within designated industrial corridors are designed to attract investors, reduce capital outlays, and incentivize long-term industrial development. These benefits may come from central and state governments and typically apply to land acquisition, development, and operational phases. Below are five categories of tax-related incentives that commonly apply to land located within these notified corridors:

1. Stamp Duty and Registration Fee Exemptions

• Many state governments offer partial or full exemption from stamp duty and registration charges on land transactions within designated industrial zones.
  
• Benefits often apply to:
  
  • First-time buyers of industrial plots from government agencies
    
  • Long-term lease arrangements (e.g., 30–99 years)
    
• Some states offer reimbursement of stamp duty if the unit commences operations within a specified period.
  
• Encourages faster land uptake and formal ownership conversion.
  

2. Property Tax and Development Charge Rebates

• Local municipalities or industrial development authorities may offer:
  
  • Property tax holidays for 3–7 years after the start of production
    
  • Lower tax rates for industrial users versus commercial use
    
  • Waiver or deferment of development charges, external infrastructure fees, or betterment levies
    
• Applicable primarily within notified Industrial Parks, NIMZs, or SEZ-adjacent zones.
  

3. Capital Subsidies and Investment-Based Tax Relief

• Eligible units in the corridor may claim:
  
  • Capital investment subsidies tied to land cost or development expenditure
    
  • Reimbursement of part of the cost of land development, boundary walls, and infrastructure
    
• Under some state industrial policies, land used for specified industries (e.g., electronics, logistics) qualifies for accelerated depreciation or interest reimbursement on loans taken for land development.

4. Input Tax Credit (ITC) and GST Exemptions

• GST paid on input services used for industrial site preparation and infrastructure construction may be credit-eligible if the end-use is taxable.
  
• In certain notified parks or economic zones:
  
  • GST reimbursement may be offered as part of state incentive packages
    
  • Input Tax Credits on construction and development may be retained rather than blocked under the general real estate norms.
    
• Reduces overall project cost for tax-compliant developers or tenants.

5. Income Tax Benefits via Industrial Cluster Designation

• Industrial zones designated as Special Economic Zones (SEZs) or within backward districts may offer:
  
  • Income tax holidays under Section 10AA for new units
    
  • Enhanced deduction for infrastructure providers under Section 80-IA
    
  • Additional depreciation allowances for capital-intensive sectors (e.g., manufacturing, warehousing)
    
• These benefits apply if the land is used for eligible activities within specified timelines.