Deduction u/s 80JJA

deduction under section 80JJA
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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.

Section 80JJA

Deduction in respect of profits and gains from business of collecting and processing of bio-degradable waste

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.



CA Ankita Khetan
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