Income Tax Act 2025: Section 145 for Tax Year 2025-26

Section 145(1) of the Income Tax Act 2025 provides a 5-year deduction on profits for businesses processing bio-degradable waste to generate power, bio-products, or fuel.

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Duction for businesses engaged in collecting and processing of bio-degradable waste

[As per the Income Tax Act, 2025 (this Act) w.e.f. 1st April, 2026.]

Section 145(1) of Income Tax Act 2025

(1) 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 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.


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