Deduction in respect of profits and gains from certain industrial undertakings
[Section-141 as per the Income Tax Act, 2025 (this Act) w.e.f. 1st April, 2026.]
In respect of any tax year, where––
- (a) the gross total income of an assessee, includes any profits and gains derived from any business referred to in section 80-IB of the Income-tax Act, 1961; and
- (b) such assessee is eligible to claim a deduction from the profits and gains derived from such business for such tax year under the provisions of the said section, if the said Act had not been repealed,
there shall be allowed, in computing the total income of the assessee, a deduction from the profits and gains derived from such business, subject to the conditions that—
- (i) the amount of deduction is calculated as per the provisions of section 80-IB of the Income-tax Act, 1961; and
- (ii) the deduction under this Act shall be allowed only for such tax years, as would have been allowed under section 80-IB of the Income-tax Act, 1961, if the said Act had not been repealed.
FAQs on Section 141 of Income Tax Act 2025
What is the objective of Section 141 of the Income Tax Act, 2025?
Section 141 aims to continue tax benefits for certain industrial undertakings that were earlier eligible under section 80-IB of the repealed Income-tax Act, 1961.
Who is eligible to claim deduction under Section 141?
An assessee whose gross total income includes profits and gains from a business previously eligible under section 80-IB of the repealed Act may claim deduction under this section.
Does Section 141 apply to new businesses started after 1st April 2025?
No, it applies only to businesses that were eligible under section 80-IB of the repealed Act and continue to satisfy the earlier conditions.
How is the deduction under Section 141 calculated?
The deduction is calculated in the same manner as it would have been under section 80-IB of the repealed Income-tax Act, 1961.
For how many years can the deduction be claimed under Section 141?
The deduction can be claimed only for such tax years as would have been allowed under section 80-IB if that Act had not been repealed.
Is fresh approval required under this Act to claim deduction under Section 141?
No, fresh approval is not required if the business was already eligible and compliant under the repealed section 80-IB.
Can an assessee claim a higher deduction than what was allowed under section 80-IB?
No, the deduction is limited to the amount that would have been allowable under section 80-IB.
Is Section 141 applicable to all industrial undertakings?
No, it applies only to those undertakings which were eligible under section 80-IB of the repealed Act.
What if the assessee had already exhausted the maximum period of deduction under section 80-IB?
No deduction shall be allowed under Section 141 if the eligible period under the repealed section 80-IB has already ended.
Is partial deduction allowed if the undertaking was in the middle of its eligible period as on repeal?
Yes, deduction is allowed for the remaining eligible tax years, provided all conditions are met.
What documentation is required to claim deduction under Section 141?
Supporting records to prove earlier eligibility under section 80-IB, along with relevant income computations and audit reports, if applicable.
Can the deduction under Section 141 be carried forward to subsequent years?
No, the deduction is allowed only in the tax years that would have been eligible under section 80-IB and cannot be carried forward beyond that.
Does the assessee need to revalidate earlier compliance under section 80-IB?
Yes, the assessee must demonstrate continued compliance with conditions that would have been required under section 80-IB.
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