Section 80HHA - Deduction in respect of profits and gains from newly established small-scale industrial undertakings in certain areas

Deduction for small-scale industrial profits: tax relief for qualifying rural start-ups subject to eligibility, audit and exclusion rules.

A deduction is allowed for profits and gains of a qualifying small-scale industrial undertaking that begins manufacturing or producing in specified rural areas, subject to conditions that it is not a split/reconstructed business (with limited exceptions), does not transfer previously used machinery beyond a de minimis limit, and meets prescribed workforce thresholds. The deduction applies for a continuous ten-year period from commencement, requires an audit report for non-corporate assessees, follows parallel computation rules for industrial undertakings, has priority over certain other deductions, and excludes mining. Rural area and small-scale designation are statutorily defined.