Income Tax Act, 2025
Section 1: Ins. by Act 22 of 2007, s. 32 (w.e.f. 12008).
1. Ins. by Act 22 of 2007, s. 32 (w.e.f. 12008).
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(7) For the purposes of this section,—
(i) “initial assessment year” means the assessment year relevant to the previous year in which the
undertaking begins to manufacture or produce articles or things, or completes substantial expansion;
(ii) “North-Eastern States” means the States of Arunachal Pradesh, Assam, Manipur, Meghalaya,
Mizoram, Nagaland, Sikkim and Tripura;
(iii) “substantial expansion” means increase in the investment in the plant and machinery by at
least twenty-five per cent of the book value of plant and machinery (before taking depreciation in any
year), as on the first day of the previous year in which the substantial expansion is undertaken;
(iv) “eligible article or thing” means the article or thing other than the following :—
(a) goods falling under Chapter 24 of the First Schedule to the Central Excise Tariff
Act, 1985 (5 of 1986), which pertains to tobacco and manufactured tobacco substitutes;
(b) pan masala as covered under Chapter 21 of the First Schedule to the Central Excise Tariff
Act, 1985 (5 of 1986);
(c) plastic carry bags of less than 20 microns as specified by the Ministry of Environment
and Forests vide Notification No. S.O. 705(E), dated the 2nd September, 1999 and S.O. 698(E),
dated the 17th June, 2003; and
(d) goods falling under Chapter 27 of the First Schedule to the Central Excise Tariff
Act, 1985 (5 of 1986), produced by petroleum oil or gas refineries;
(v) “eligible business” means the business of,—
(a) hotel (not below two star category);
(b) adventure and leisure sports including ropeways;
(c) providing medical and health services in the nature of nursing home with a minimum
capacity of 25 beds;
(d) running an old-age home;
(e) operating vocational training institute for hotel management, catering and food craft,
entrepreneurship development, nursing and para-medical, civil aviation related training, fashion
designing and industrial training;
(f) running information technology related training centre;
(g) manufacturing of information technology hardware; and
(h) bio-technology.]
80J. [Deduction in respect of profits and gains from newly established industrial undertakings
or ships or hotel business in certain cases].—Omitted by the Finance (No. 2) Act, 1996 (33 of 1996),
s. 29 (w.r.e.f. 11989).
410
80JJ. [Deduction in respect of profits and gains from business of poultry farming].—Omitted by
the Finance Act, 1997 (26 of 1997), s. 26 (w.e.f. 11998).
1[80JJA. 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 2[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, 3[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].
4[80JJAA. Deduction in respect of employment of new employees.—(1) Where the gross total
income of an assessee to whom section 44AB applies, includes any profits and gains derived from
business, there shall, subject to the conditions specified in sub-section (2), be allowed a deduction of an
amount equal to thirty per cent. of additional employee cost incurred in the course of such business in the
previous year, for three assessment years including the assessment year relevant to the previous year in
which such employment is provided.
(2) No deduction under sub-section (1) shall be allowed,—
(a) if the business is formed by splitting up, or the reconstruction, of an existing business:
Provided that nothing contained in this clause shall apply in respect of a business which is formed
as a result of re-establishment, reconstruction or revival by the assessee of the business in the
circumstances and within the period specified in section 33B;
(b) if the business is acquired by the assessee by way of transfer from any other person or as a
result of any business reorganisation;
(c) unless the assessee furnishes alongwith the return of income the report of the accountant, as
defined in the Explanation to section 288 giving such particulars in the report as may be prescribed.
Explanation.—For the purposes of this section,—
(i) “additional employee cost” means total emoluments paid or payable to additional employees
employed during the previous year:
Provided that in the case of an existing business, the additional employee cost shall be nil, if—
(a) there is no increase in the number of employees from the total number of employees
employed as on the last day of the preceding year;
1. Ins. by Act 21 of 1998, s. 35 (w.e.f. 11999). Earlier section 80JJA was inserted by Act 21 of 1979, s. 13 (w.e.f. 1
1980) and later omitted by Act 11 of 1983, s. 27 (w.e.f. 11984).
For the purposes of this section,—
“initial assessment year” means the assessment year relevant to the previous year in which the
undertaking begins to manufacture or produce articles or things, or completes substantial expansion;
“North-Eastern States” means the States of Arunachal Pradesh, Assam, Manipur, Meghalaya,
Mizoram, Nagaland, Sikkim and Tripura;
“substantial expansion” means increase in the investment in the plant and machinery by at
least twenty-five per cent of the book value of plant and machinery (before taking depreciation in any
year), as on the first day of the previous year in which the substantial expansion is undertaken;
“eligible article or thing” means the article or thing other than the following :—
goods falling under Chapter 24 of the First Schedule to the Central Excise Tariff
Act, 1985 (5 of 1986), which pertains to tobacco and manufactured tobacco substitutes;
pan masala as covered under Chapter 21 of the First Schedule to the Central Excise Tariff
Act, 1985 (5 of 1986);
plastic carry bags of less than 20 microns as specified by the Ministry of Environment
and Forests vide Notification No. S.O. 705
goods falling under Chapter 27 of the First Schedule to the Central Excise Tariff
Act, 1985 (5 of 1986), produced by petroleum oil or gas refineries;
“eligible business” means the business of,—
hotel (not below two star category);
adventure and leisure sports including ropeways;
providing medical and health services in the nature of nursing home with a minimum
capacity of 25 beds;
running an old-age home;
operating vocational training institute for hotel management, catering and food craft,
entrepreneurship development, nursing and para-medical, civil aviation related training, fashion
designing and industrial training;
running information technology related training centre;
manufacturing of information technology hardware; and
bio-technology.]
80J. [Deduction in respect of profits and gains from newly established industrial undertakings
or ships or hotel business in certain cases].—Omitted by the Finance (No. 2) Act, 1996 (33 of 1996),
s. 29 (w.r.e.f. 11989).
410
80JJ. [Deduction in respect of profits and gains from business of poultry farming].—Omitted by
the Finance Act, 1997 (26 of 1997), s. 26 (w.e.f. 11998).
1[80JJA. 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 2[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, 3[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].
4[80JJAA. Deduction in respect of employment of new employees.—
Where the gross total
income of an assessee to whom section 44AB applies, includes any profits and gains derived from
business, there shall, subject to the conditions specified in sub-section
No deduction under sub-section
shall be allowed,—
if the business is formed by splitting up, or the reconstruction, of an existing business:
Provided that nothing contained in this clause shall apply in respect of a business which is formed
as a result of re-establishment, reconstruction or revival by the assessee of the business in the
circumstances and within the period specified in section 33B;
if the business is acquired by the assessee by way of transfer from any other person or as a
result of any business reorganisation;
unless the assessee furnishes alongwith the return of income the report of the accountant, as
defined in the Explanation to section 288 giving such particulars in the report as may be prescribed.
Explanation.—For the purposes of this section,—
“additional employee cost” means total emoluments paid or payable to additional employees
employed during the previous year:
Provided that in the case of an existing business, the additional employee cost shall be nil, if—
there is no increase in the number of employees from the total number of employees
employed as on the last day of the preceding year;
1. Ins. by Act 21 of 1998, s. 35 (w.e.f. 11999). Earlier section 80JJA was inserted by Act 21 of 1979, s. 13 (w.e.f. 1
1980) and later omitted by Act 11 of 1983, s. 27 (w.e.f. 11984).