Deduction under section 80IA

[MANOHAR KALBURGI]

Dear Sir,

One of our client is running a windmill business (Proprietorship) and claimed deduction u/s 80IA for 8 consecutive years. Now he wants to transfer his business to his son. What is the tax implication on this. Will his son get 2 more years of deduction u/s 80IA or will he get fresh 10 years of deduction.

Regards,

[DR.MARIAPPAN GOVINDARAJAN]

In my view his son will get 2 more years.

AI Summary

Section 80IA deduction continuity: transfer of proprietorship yields only the remaining deduction term for the successor, not a new full term. Transfer of a proprietorship windmill undertaking raises whether the successor inherits the unexpired portion of an existing section 80IA deduction term or obtains a fresh term; the forum reply states the successor is entitled only to the remaining period of the original deduction, not a new full-term entitlement.