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ITA 2025 · Section 145

Bio-degradable Waste 80JJA

Chapter VIII — DeductionsITA 2025AY 2026-27 onward

Section 145 is the substantive equivalent of 1961 s. 80 JJA. 100% deduction of profits from business of collecting and processing / treating bio-degradable waste — for generation of: (a) power; (b) bio-fuels; (c) bio-fertilisers; (d)…

Section 145 — BIO-DEGRADABLE WASTE PROCESSING DEDUCTION (1961 s. 80JJA SUCCESSOR)

Section 145 is the substantive equivalent of 1961 s. 80JJA. 100% deduction of profits from business of collecting and processing / treating bio-degradable waste — for generation of: (a) power; (b) bio-fuels; (c) bio-fertilisers; (d) bio-pesticides; (e) bio-organic / biological agents; (f) other prescribed products. 5 consecutive AYs from year of commencement. Promotes circular-economy / waste-to-energy initiatives. Available IN BOTH OLD AND NEW REGIMES.

PLANNING NOTES

(i) For agri-waste / municipal-solid-waste / dairy-waste processing units, model 5-year deduction in DCF. (ii) Document waste-source + product-output (energy / fuel / fertiliser); audit by tax-authorities likely. (iii) Available in both regimes — no regime-choice impact.

CROSS-REFERENCES

  • Section 33 — Depreciation on plant and machinery.
  • Section 200 — Concessional rates (compatible).