Section 80-JJA of Income Tax Act for AY 2023-24

Section 80-JJA of Income Tax Act 1961 amended by Finance Act 2020. Profits from business of collecting and processing of bio-degradable waste.

Amended and updated notes on section 80-JJA of Income Tax Act 1961 as amended by the Finance Act 2022 and Income-tax Rules, 1962. Detail discussion on provisions and rules related to deduction in respect of profits and gains from business of collecting and processing of bio-degradable waste.

Chapter VIA (Sections 80A to 80U) of the Income Tax Act 1961 deals with the provisions related to deductions to be made in computing total income. Section 80-JJA of IT Act 1961-2023 provides for deduction in respect of profits and gains from business of collecting and processing of bio-degradable waste.

Recently, we have discussed in detail section 80-IE (Deduction in respect of profits and gains from business of hotels and convention centres in specified area) of IT Act 1961. Today, we learn the provisions of section 80-JJA of Income-tax Act 1961. The amended provision of section 80-JJA is effective for financial year 2022-23 relevant to the assessment year 2023-24.

In this article, you will learn detail of the provisions of section 80-JJA of the Income Tax Act, 1961 Bare Act read with the Income-tax Rules, 1962, regulations, notifications, circulars, orders and Press Release by CBDT, Income Tax Department and the Ministry of Law and Justice, Government of India.

Section 80-JJA: Deduction in respect of profits and gains from business of collecting and processing of bio-degradable waste

Where the gross total income of an assessee includes any profits and gains derived from the business of collecting and processing or treating of bio-degradable waste for generating power or producing bio-fertilizers, bio-pesticides or other biological agents or for producing bio-gas or making pellets or briquettes for fuel or organic manure, there shall be allowed, in computing the total income of the assessee, a deduction of an amount equal to the whole of such profits and gains for a period of five consecutive assessment years beginning with the assessment year relevant to the previous year in which such business commences.


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