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

Section 80PA of Income Tax Act 1961 amended by Finance Act 2022 and Income-tax Rules 1962. Deduction for certain income of Producer Companies.

Amended and updated notes on section 80PA 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 certain income of Producer Companies.

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 80PA of IT Act 1961-2022 provides for deduction in respect of certain income of Producer Companies.

Recently, we have discussed in detail section 80P (Deduction in respect of income of co-operative societies) of IT Act 1961. Today, we learn the provisions of section 80PA of Income-tax Act 1961. The amended provision of section 80PA 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 80P 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 80PA: Deduction in respect of certain income of Producer Companies

Section 80PA(1) of Income Tax Act

Where the gross total income of an assessee, being a Producer Company having a total turnover of less than one hundred crore rupees in any previous year, includes any profits and gains derived from eligible business, there shall, in accordance with and subject to the provisions of this section, be allowed, in computing the total income of the assessee, a deduction of an amount equal to one hundred per cent of the profits and gains attributable to such business for the previous year relevant to an assessment year commencing on or after the 1st day of April, 2019, but before the 1st day of April, 2025.

Section 80PA(2) of Income Tax Act

In a case where the assessee is entitled also to deduction under any other provision of this Chapter, the deduction under this section shall be allowed with reference to the income, if any, as referred to in this section included in the gross total income as reduced by the deductions under such other provision of this Chapter.

Explanation: For the purposes of this section,—

(i) “eligible business” means—

  • (a) the marketing of agricultural produce grown by the members; or
  • (b) the purchase of agricultural implements, seeds, livestock or other articles intended for agriculture for the purpose of supplying them to the members; or
  • (c) the processing of the agricultural produce of the members;

(ii) “member” shall have the meaning assigned to it in clause (d) of section 581A of the Companies Act, 1956 (1 of 1956);

(iii) “Producer Company” shall have the meaning assigned to it in clause (l) of section 581A of the Companies Act, 1956 (1 of 1956).]


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