Deduction u/s 80JJA

Deduction u/s 80JJA

The world is having a tough time dealing with all sorts of pollution resulting due to negligent behavior of humans. It is time for the world to become more responsible in the way waste is discarded for the future and survival.

In an attempt to promote waste management and protect the land, water, and air from pollution, the Government of  India had come up with blanket deduction from taxes if the taxpayer enters into the business of collecting and processing the bio-degradable waste. Let’s understand the deduction section in detail.

Who is eligible to claim the deduction under section 80JJA?

Deduction u/s 80JJA can be claimed by the assessee who is into the business of collecting & processing/treating the bio-degradable waste in order

• to generate power or
• to produce bio-fertilizers, bio-pesticides, or other biological agents or
• to produce bio-gas or
• to make pellets or briquettes for fuel or
• to make organic manure.

What is the eligible deduction u/s 80JJA?

100% of the profit/gain derived from the above-mentioned eligible business activities.

What is the eligible period for deduction u/s 80JJA?

The deduction u/s 80JJA can be claimed for five consecutive assessment years beginning with the assessment year relevant to the previous year in which the business commenced.

When was deduction u/s 80JJA inserted?

Section 80JJA was inserted after section 80 JJ and was made effective from  1st April 1999.

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CA Ankita Khetan

Founder at Financepost.in

Chartered Accountant in practice, DipIFRS (from ACCA, UK), Post Graduate in Commerce, Certified Independent Director (from IICA), and holds a certification in Forex and Treasury Management course (by ICAI).

She can be contacted at info.financepost@gmail.com

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Disclaimer: The above content is for general info purpose only and does not constitute professional advice. The author/ website will not be liable for any inaccurate / incomplete information and any reliance you place on the content is strictly at your risk.

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