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Case lawIncome-tax Act 2025Chapter VIII › Section 141
Chapter VIIIwas s.80

Section 141 of the Income-tax Act, 2025

Section 141 — Deduction in respect of profits and gains from certain industrial undertakings. Successor to s.80 of the 1961 Act.

Where this section sits

Section 141 is in Chapter VIII — Deductions to Be Made in Computing Total Income, which runs from section 122 to section 154.

← Section 140  ·  Section 142 →

What this section does

The section allows a deduction where two things are true for a tax year: the assessee's gross total income includes profits from a business referred to in section 80-ib of the Income-tax Act, 1961, and the assessee would have been eligible to claim a deduction on those profits under that section for that year had the 1961 Act not been repealed. The deduction is then computed as section 80-ib of the 1961 Act provides, and is available only for the tax years for which that section would have allowed it. Nothing about which businesses qualify, at what rate, or for how many years appears in this section.

Why it is there

It preserves an unexpired 80-ib claim across the repeal of the 1961 Act, so an undertaking part-way through that deduction period is not cut off by the change of statute. The relief is grandfathered rather than re-enacted — the old section supplies both the quantum and the run-off period.

Who it applies to

The figures, and what each one turns on

Read the condition in the same row. A figure quoted without it is a wrong answer with a citation attached.
WhatFigureThe condition on itWhere
Amount of the deductionAs calculated under section 80-ib of the Income-tax Act, 1961The section states no rate or ceiling of its ownClause (i)
Number of years the deduction runsOnly such tax years as would have been allowed under section 80-ib of the Income-tax Act, 1961Computed as if that Act had not been repealedClause (ii)

What this means in practice

To work out a claim you have to read the repealed section 80-ib of the 1961 Act — its eligibility list, its percentages and its year counts all still govern, and this section supplies none of them. Nothing new can enter the relief through this route: eligibility is tested as it would have been under the old section, so only undertakings already within its scope and still inside its deduction period benefit. The general Chapter VIII conditions, including the timely return and claim requirement in section 122(5), continue to apply.

An example

Illustrative only, and invented for this page. The figures are chosen to show the rule biting, not taken from any real matter.

A company's undertaking was part-way through its deduction under section 80-ib of the Income-tax Act, 1961 when that Act was repealed. Section 141 keeps the claim alive: its gross total income still includes profits from that business and it would have been eligible under section 80-ib had the old Act not been repealed, so the deduction continues — computed exactly as section 80-ib provides, this section stating no rate, no ceiling and no list of qualifying businesses of its own. The limit bites at both ends. Clause (ii) allows the deduction only for the years section 80-ib itself would have allowed, so the count carries on rather than restarting; and a company that sets up a comparable undertaking after the repeal gets nothing, because clause (b)'s eligibility test can never be satisfied.

Where you meet this section

In the deduction claim in the return of an undertaking that was mid-way through a section 80-ib run when the 1961 Act was repealed, and in the assessment that checks it. The papers you produce are the old section 80-ib record — the year count and the computation both come from the repealed section, not from anything new under this Act.

The words themselves

the deduction under this Act shall be allowed only for such tax years, as would have been allowed under section 80-IB of the Income-tax Act, 1961 (43 of 1961), as if the said Act had not been repealed
s.141(ii), Income-tax Act, 2025.

What people get wrong

What this replaced

The correspondence is the Income Tax Department’s own, from its comparison utility for the 1961 and 2025 Acts. A renumbering is the easy half; whether the words changed is the half that decides cases.

See the full 1961 to 2025 concordance.

Rules that serve this section

Rules of the Income-tax Rules, 2026 that work section 141. Where the rule’s own heading names the section we say so; the rest are marked on reading the rule, which is our derivation and not the department’s. A rule that serves the section silently and that we have missed will not appear here.

All of them are in the Rules 2026 index.

Circulars of the Board on this section

A circular binds the department, not you and not a court. Every one below was written under the 1961 Act; it reaches this section because the department’s own concordance carries the provision it names to this one.

See every circular and notification on this section, or the circulars index.

Notifications that reach this section

A notification is made under a power the Act gives and, within that power, is law. These too were made under the 1961 Act and are placed here by the department’s concordance.

See every circular and notification on this section, or the notifications index.

Case law carried across

Read this before you rely on it. Every decision below was decided under the Income-tax Act, 1961. It appears here because it is tagged to a 1961 provision that the department’s own mapping carries to section 141. That is an inference we have drawn, not a holding on the new section: where the words changed in the move, the reasoning may not survive. Treat this as the place to start looking, not as authority on the 2025 Act.

Explainers

Read with

What this page does not tell you. It does not reproduce the section. Everything above was written from the section’s own text as the Income Tax Department publishes it — the text is here, and nothing here is advice on your facts. Where a figure matters, read the sub-section it comes from.