Deduction in respect of certain income of Producer Companies
[As per the Income Tax Act, 2025 (this Act) w.e.f. 1st April, 2026.]
Section 150(1) of Income Tax Act 2025
(1) An assessee, who,––
(a) is a Producer Company;
(b) has a total turnover of less than one hundred crore rupees in any tax year; and
(c) has any profits and gains derived from eligible business included in its gross total income,
shall be allowed a deduction of 100% of the profits and gains attributable to such business for the tax year commencing on or after the 1st April, 2018, but before the 1st April, 2024.
Section 150(2) of Income Tax Act 2025
(2) The deduction under this section shall be allowed after the gross total income of the assessee mentioned in sub-section (1) is reduced by any other deduction under this Chapter to which such assessee is entitled.
Section 150(3) of Income Tax Act 2025
(3) For the purposes of this section,—
(a) “eligible business” means—
(i) the marketing of agricultural produce grown by the members; or
(ii) the purchase of agricultural implements, seeds, livestock or other articles intended for agriculture for the purpose of supplying them to the members; or
(iii) the processing of the agricultural produce of the members;
(b) “Member” shall have the same meaning as assigned to it in section 378A(e) of the Companies Act, 2013;
(c) “Producer Company” shall have the same meaning as assigned to it in section 378A(1) of the Companies Act, 3013.