Deduction in respect of certain income of Producer Companies - Section 80PA - Income Tax - Ready Reckoner - Income Tax

Deduction in respect of certain income of Producer Companies - Section 80PA Where the gross total income of an assessee, being a Producer Company having a total turnover of less than ₹100 crores in any previous year, includes any profits and gains derived from eligible business, there shall, in accordance with and subject to the provisions of this section, be allowed, in computing the total income of the assessee. This amendment will take effect from 1st April, 2019 and will, accordingly, apply in relation to the assessment year 2019-20 and subsequent assessment years. Eligibility Conditions: The assessee is a producer company under section 581A(i) of the Companies Act, 1956 . The total turnover of the producer company is less than ₹ 100 crore in any previous year. The gross total income of the producer company includes any profits and gains derived from eligible business . Eligible business means - (a) the marketing of agricultural produce grown by the members; or (b) the purchase of agricultural implements, seeds, livestock or other articles intended for agriculture for the purpose of supplying them to the members; or (c) the processing of the agricultural produce of the members. Amount of deduction A deduction of an amount equal to 100% of the profits and gains attributable to such business for the previous year relevant to an assessment year commencing on or after the 1st day of April, 2019, but before the 1st day of April, 2025. If the assessee is also entitled to deduction under any other provision or provisions of chapter VI-A, the deduction under section 80PA shall be allowed from the gross total income as reduced by the deduction under such other provisions.