IT Deductions

Applicable to: Manufacturing, SMEs, and select service providers This section provides partial to full tax exemptions (25%–100%) for eligible businesses, targeting job creation and regional development. Key Features (AY 2025-26) 1.   Eligible Categories & Deduction Rates BUSINESS TYPE DEDUCTION PERIOD SPECIAL CONDITIONS Small-Scale Industries (Turnover ≤ ₹50Cr) 25% of profits 10Y Must employ ≥20 workers Himalayan States/Northeast Units […]

Applicable to: Developers of Affordable Housing Projects This section provides a 100% tax exemption on profits from eligible affordable housing projects, boosting the government’s “Housing for All” mission. Key Features (AY 2025-26) 1.   Eligibility Criteria ✅ Project Approval: Must be approved by regulatory authorities (like RERA) between 1 June 2016 to 31 March 2022 ✅ Unit Specifications: Carpet Area: ≤ 90 sqm (Metros:

Applicable to: Businesses engaged in collecting/processing biodegradable waste This section provides a 100% tax deduction on profits from recycling agricultural/animal waste, promoting sustainable waste management. Key Features (AY 2025-26) 1.  Eligible Activities ✅ Agricultural Waste: Processing sugarcane trash, paddy straw, coconut husks Converting crop residue into biofuel/manure ✅ Animal Waste: Processing slaughterhouse waste Converting livestock dung into biogas ✅ Municipal Waste:

Applicable to: All businesses (except freelancers)* This section provides 30-60% additional wage cost deduction for creating new regular employment, incentivizing job creation in the formal sector. Key Features (AY 2025-26) 1.  Eligibility Criteria ✅ New Employees Hired: Must work ≥240 days in year (150 days for apparel manufacturing) Salary ≤ ₹25,000/month First-time employment(not rehired former employees) ✅ Business Requirements: Must

Applicable to: Banks/Financial Institutions operating in IFSCs (e.g., GIFT City) This section provides 100% tax exemption for 10 years on specified incomes to promote India’s financial hubs. Key Features (AY 2025-26) 1.   Eligible Entities ✅ Offshore Banking Units (OBUs) of Indian/foreign banks ✅ IFSC Units in GIFT City (Insurance, FinTech, Fund Mgmt.) 2.  Deduction Details INCOME TYPE DEDUCTION PERIOD Eligible Business Income

Applicable to: Registered Cooperative Societies This section provides full or partial tax exemptions to encourage cooperative movements in agriculture, banking, and rural development. Key Features (AY 2025-26) 1.   Eligible Societies & Deductions CATEGORY DEDUCTION CONDITIONS Credit Societies 100% income exempt Must provide credit to members Agricultural Societies 100% exempt Income from farming/marketing Consumer Societies 100% exempt Sales to

Applicable to: *Farmer Producer Companies (FPCs) registered under Companies Act, 1956/2013* This section provides 100% tax exemption on profits from specific agricultural activities, empowering farmer collectives. Key Features (AY 2025-26) 1.   Eligible Activities ✅ Primary Produce Handling: Harvesting Grading Pooling Processing Marketing of members’ agricultural produce ✅ Support Services: Technical consultancy Training Insurance Credit facilities 2.  Deduction Details 100% profit

Applicable to: Individual authors/researchers (Indian residents) This section provides tax relief on royalty income from books (excluding textbooks), encouraging literary work in Indian languages. Key Features (AY 2025-26) 1.   Eligible Income ✅ Royalties from published books: Novels Poetry Plays Scientific works ❌Excludes: Textbooks Guides/help books Translations 2.  Deduction Details PARAMETER LIMIT Maximum Deduction ₹3 lakh/year Eligible Languages All Indian +

Applicable to: Indian Resident Individuals (Inventors/Patent Holders) This section provides tax relief on royalty income from patented inventions, encouraging innovation and R&D in India. Key Features (AY 2025-26) 1.   Eligible Income ✅ Royalties from patents: Registered with Indian Patent Office For inventions in science/technology ❌Excludes: Copyright income (covered under 80QQB) Lump-sum sale of patents 2.  Deduction Details PARAMETER LIMIT Maximum Deduction

Applicable to: Individuals & HUFs (Non-Senior Citizens) This section provides tax relief on interest income from savings accounts, reducing taxable income for small depositors. Key Features (AY 2025-26) 1.   Eligible Income ✅ Interest from: Savings accounts (banks/post offices) Cooperative society savings accounts ❌ Excludes: Fixed deposit (FD) interest Recurring deposit (RD) interest Senior citizen savings (covered under 80TTB) 2.