§ 145
Chapter VIII — Deductions To Be Made In Computing Total Income
If the gross total income of an assessee includes any profits and gains
Income-tax Act, 2025
Business owners who collect and process biodegradable waste for certain purposes may be eligible for a tax deduction. This includes generating power, producing bio-fertilizers, or making fuel pellets. The deduction is equal to the full amount of profits and gains from this business for 5 consecutive years.
- The 5-year period starts from the year the business begins.
📜 Official text of the section +
145. If 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,—
( a) generating power; or
( b) producing bio-fertilizers, bio-pesticides or other biological agents; or
( c) producing bio-gas; or
( d) making pellets or briquettes for fuel or organic manure,
there shall be allowed a deduction equal to the whole amount of such profits and
gains for five consecutive tax years, beginning with the tax year in which such
business commences.
Deduction in respect of additional employee cost.
Plain-language summary — not the official text. Refer to the bare Act and confirm with a professional for your specific case.
Related sections
§ 122Deductions to be made in computing total income§ 123An individual or a Hindu undivided family, shall be allowed a deduction§ 124Section 124§ 125Deduction in respect of contribution to Agnipath Scheme§ 126Government along with interest on both these contributions are held. Deduction in respect of health insurance premia§ 127Section 127