Section 80PA → Section 149
Deduction in respect of certain income of Producer Companies
Quick Answer
Section 80PA of the Income Tax Act, 1961 (Deduction in respect of certain income of Producer Companies) corresponds to Section 149 of the Income-tax Act, 2025, effective 1st April 2026. Status: Retained.
What changed for Section 80PA
The starting point is Section 80PA of the Income Tax Act, 1961 — deduction in respect of certain income of producer companies. Allows 100% deduction of profits for Farmer Producer Companies (FPCs) having a total turnover of less than Rs. 100 Crores.
From 1st April 2026, the same subject sits at Section 149 of the Income-tax Act, 2025 — retained and renumbered as Section 149 of the Income-tax Act, 2025. Retained to support the aggregation of marginalized farmers into corporate structures.
For Section 80PA, the practical impact is rated Medium. Supports agriculture-based startups and farmer collectives.
Sec 80PA
Provision Summary
Allows 100% deduction of profits for Farmer Producer Companies (FPCs) having a total turnover of less than Rs. 100 Crores.
Sec 149
Provision Summary
Retained to support the aggregation of marginalized farmers into corporate structures.
Key Changes & Highlights
- MCA data sync required to prove valid FPC registration.
Frequently Asked Questions
What is Section 80PA of the Income Tax Act, 1961 about?
Section 80PA of the Income Tax Act, 1961 covers deduction in respect of certain income of producer companies. Allows 100% deduction of profits for Farmer Producer Companies (FPCs) having a total turnover of less than Rs. 100 Crores.
Which section replaces Section 80PA in the Income-tax Act, 2025?
Section 80PA of the Income Tax Act, 1961 maps to Section 149 of the Income-tax Act, 2025, effective 1st April 2026 (status: Retained). Retained to support the aggregation of marginalized farmers into corporate structures.
What is the impact of the change to Section 80PA under the new tax code?
The transition impact for Section 80PA is rated Medium. Supports agriculture-based startups and farmer collectives.
What should I watch out for when Section 80PA moves to the 2025 code?
MCA data sync required to prove valid FPC registration. These points are specific to Section 80PA (Deduction in respect of certain income of Producer Companies).
Disclaimer: This mapping of Section 80PA (Deduction in respect of certain income of Producer Companies) to Section 149 of the Income-tax Act, 2025 is for educational and reference purposes only, based on publicly available drafts and circulars. As Section 80PA is currently marked Retained, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.
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