Section 80JJA → Section 140
Deduction in respect of profits and gains from business of collecting and processing of bio-degradable waste
Quick Answer
Section 80JJA of the Income Tax Act, 1961 (Deduction in respect of profits and gains from business of collecting and processing of bio-degradable waste) corresponds to Section 140 of the Income-tax Act, 2025, effective 1st April 2026. Status: Retained.
What changed for Section 80JJA
Under the Income Tax Act, 1961, Section 80JJA governs deduction in respect of profits and gains from business of collecting and processing of bio-degradable waste. Allows 100% deduction of profits for 5 consecutive years for businesses generating power or fertilizers from bio-degradable waste.
From 1st April 2026, the same subject sits at Section 140 of the Income-tax Act, 2025 — retained and renumbered as Section 140 of the Income-tax Act, 2025. Retained to align with national sustainability and green energy goals.
For Section 80JJA, the practical impact is rated Medium. Important incentive for waste-management startups.
Sec 80JJA
Provision Summary
Allows 100% deduction of profits for 5 consecutive years for businesses generating power or fertilizers from bio-degradable waste.
Sec 140
Provision Summary
Retained to align with national sustainability and green energy goals.
Key Changes & Highlights
- No major change. Promotes the circular economy.
Frequently Asked Questions
What is Section 80JJA of the Income Tax Act, 1961 about?
Section 80JJA of the Income Tax Act, 1961 covers deduction in respect of profits and gains from business of collecting and processing of bio-degradable waste. Allows 100% deduction of profits for 5 consecutive years for businesses generating power or fertilizers from bio-degradable waste.
Which section replaces Section 80JJA in the Income-tax Act, 2025?
Section 80JJA of the Income Tax Act, 1961 maps to Section 140 of the Income-tax Act, 2025, effective 1st April 2026 (status: Retained). Retained to align with national sustainability and green energy goals.
What is the impact of the change to Section 80JJA under the new tax code?
The transition impact for Section 80JJA is rated Medium. Important incentive for waste-management startups.
Disclaimer: This mapping of Section 80JJA (Deduction in respect of profits and gains from business of collecting and processing of bio-degradable waste) to Section 140 of the Income-tax Act, 2025 is for educational and reference purposes only, based on publicly available drafts and circulars. As Section 80JJA is currently marked Retained, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.
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