section 80IA

[jitendra jain]

dear team

want to know about section 80IA of income tax for road infrastructure projects.

in new budget it is still available. can a company incorporate in year 2025, April month can Availa this deductions of section 80IA

please suggest the latest law and the sunset date to avail the benefit of section 80IA

thanks & regards.

Jitendra Jain

9422727133

[YAGAY and SUN]

Section 80-IA of the Income-tax Act, 1961, provides for a deduction in respect of profits and gains derived by an undertaking or enterprise from the business of developing, operating and maintaining, or developing and maintaining any infrastructure facility, including road infrastructure. However, pursuant to the amendment brought by the Finance Act, 2016, the deduction under this section is not available to any enterprise or undertaking which begins the development or operation of the infrastructure facility on or after the 1st day of April, 2017. This sunset clause has been conclusively enforced, and no extension has been provided under subsequent Finance Acts or Union Budgets as of the financial year 2025–26.

Accordingly, a company incorporated in April 2025, which proposes to undertake road infrastructure development, shall not be entitled to claim deduction under Section 80-IA, as the commencement of the eligible activity falls outside the prescribed cut-off date. Such a company may, however, explore alternate provisions such as Section 35AD of the Act, subject to fulfillment of the conditions laid down therein, which provides for deduction of capital expenditure in respect of specified businesses, including infrastructure facilities.

[jitendra jain]

respected sir

Thanks for quick reply and guidance about section 80IA of income tax act. As you mention section 35AD will be applicable. 

in this section how much depreciation we can take in the first year or how much deductions we can get with these sections.

Our business profile is - A Pvt Ltd company incorporated in April 2025, work are infrastructure facility under PPP -public private partnership. this is way side amenity on Samrudhi express way (Nagpur Mumbai) contains food plaza, hotel, other public amenity, play area etc.  our business place is at washim district (Vidarbha) backward area of Maharashtra.  

please guide in this matter...

thanks & regards

jitendra jain 

AI Summary

Section 80-IA sunset clause bars infrastructure deduction for projects commencing after the cut-off; consider capital expenditure deduction rules.
The statutory sunset clause enacted in Finance Act, 2016 excludes from the infrastructure deduction any undertaking that begins development or operation on or after the prescribed cut-off date; accordingly, a company incorporated in April 2025 would not qualify for the Section 80-IA deduction. As an alternative, the company may consider provisions that allow deduction of capital expenditure for specified businesses, subject to the conditions and eligibility rules governing such capital allowance provisions.