Section 80JJA, 80JJAA, 80LA and 80PA of Income Tax act,1961 (A.Y. 2019-20)

Deductions from gross total income u/s 80 related to company assessee

Section 80G, 80GGA and 80GGB of Income Tax act, 1961 (A.Y. 2019-20)

Section 80IA, 80IAB, 80IAC and 80IB of Income Tax act,1961 (A.Y. 2019-20)

Section 80IBA, 80IC, 80ID and 80IELof Income Tax act, 1961 (A.Y. 2019-20)

1. Section 80JJA (Profits from processing of bio-degradable wastes)

Eligible assessee: All industrial undertakings in Specified Business.

Rate and period of deduction: 100% of the profit for 5 consecutive years, beginning from the year of commencement.

Specified Business: Collection and processing or treatment of bio-degradable waste for:-

• Power generation
• Producing bio-fertilizers or bio-pesticides etc.
• Producing bio-gas
• Making pellets or briquettes for fuel and
• Making organic manure.

2. Section 80JJAA (Deduction in respect of Employment of new employees)

Eligible assessee: All assessees (Corporate and Non-Corporate) who are subject to Tax Audit u/s 44AB.

Rate and period of deduction: 30% of additional employee cost for 3 years including the year in which employment is provided.

Conditions for claiming deduction u/s 80JJAA :

1. The undertaking must not have been formed by splitting up or reconstruction of a business already in existence.
2. The business should not have been acquired by way of business re-organization.
3. The business must employ additional employees during the previous year and total emoluments of such employee must not exceed ₹25000 per month.
4. Business must Incur additional employee cost during the previous year. Additional employee cost means, total emoluments payable to additional employees employed during the previous year.

3. Section 80LA (Deduction for certain incomes of Offshore banking units in SEZ and IFSC)

Eligible assessee: Offshore banking units in SEZ or units of IFSC.

Rate and period of deduction: 

1.) Offshore banking Unit

• 100% of the income for 5 consecutive years
• 50% of the income for next 5 years.

2.) International Financial Services Centre (IFSC)

• 100% of the income for 10 consecutive years out of 15 years, beginning from the year in which permission is obtained.

Conditions to be satisfied:-

1. Submission of Audit Report:- The assessee has to furnish with the return of income, report of a chartered accountant certifying that the deduction has been correctly claimed in accordance with the provisions of this section.
2. Permission from Appropriate Authority:- The eligible bank or unit of International Financial Services Centre (IFSC) must obtain permission u/s 23(1)(a) of the Banking Regulation act, 1949 or under Securities Exchange Board of India (SEBI) act, 1992. A copy of such permission has to be furnished along with the return of income.

4. Section 80PA (Deduction for farm Producer Companies)

Eligible assessee: Producer companies engaged in the integrated business of farming.

Rate and period of deduction: 100% of profits for a period of 5 years.

Conditions to be satisfied:-

1. The total turnover of the company is up to ₹100 crores during the previous financial year.
2. The Gross Total Income (GTI) of the company should include income from:-

• Marketing of agricultural produce grown by its members.
• Purchase of agricultural implements, seeds, livestock or other articles for the purpose of supplying them to its members.
• Processing of agricultural produce of its members.

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