Grandfathering of infrastructure tax deductions allows continuation of prior deduction regime into the new income tax code.
Clause 138 preserves the deduction regime of Section 80-IA as a transitional grandfathering provision: where an assessee's income includes profits from businesses referred to in Section 80-IA and the assessee would have been eligible had the old Act not been repealed, a deduction is allowed computed under Section 80-IA and only for the tax years that would have been available under that section, with all eligibility, computation, anti-abuse, audit and exclusion provisions applying by reference.