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 andSUN]

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

Infrastructure Project Tax Deductions Shift: Section 80IA Limits Benefits for Post-2017 Initiatives, Section 35AD Offers Alternative Path A discussion forum explores Section 80IA of the Income Tax Act regarding infrastructure project deductions. The key points reveal that infrastructure projects initiated after April 2017 are ineligible for tax benefits under this section. An alternative provision, Section 35AD, may offer deductions for capital expenditure in specified infrastructure businesses, subject to specific conditions for companies incorporated in 2025 undertaking public-private partnership infrastructure development.