Section 141 - Deduction in respect of profits and gains from certain industrial undertakings
This preserves residual old section 80-IB deductions. Eligibility, percentage and remaining years continue under old section 80-IB as though the 1961 Act had not been repealed.
Reviewed by CA Nikhil Gupta · Updated 9 October 2026
Current-law control
This page uses the consolidated Income-tax Act, 2025 as amended by the Finance Act, 2026. The Act and Income-tax Rules, 2026 operate from 1 April 2026. Earlier years and saved proceedings remain subject to the repeal-and-savings framework.
Primary statute: Income Tax Department consolidated Act | Rules: Notified Income-tax Rules, 2026
2-minute decode
This preserves residual old section 80-IB deductions. Eligibility, percentage and remaining years continue under old section 80-IB as though the 1961 Act had not been repealed.
Who should use this section
Eligible undertakings, enterprises or units claiming a profit-linked or transition deduction, generally subject to historical eligibility and audit conditions This applicability note is specific to section 141.
Old-law bridge
1961 Act section 80-IB
The bridge is navigational only. A 1961 Act case or rule is carried forward only after checking wording, transition provisions and the current 2025 Act text.
Professional alert
Exception / professional alert Do not market this as a new 2026 incentive. The original approval, commencement and claim history determine eligibility.
Connected Income-tax Rules, 2026 and Forms
| Rule | Current control | Form |
|---|---|---|
| Rule 66 | Audit report for profit-linked deductions | Form 32 |
Worked application
A qualifying undertaking with two old section 80-IB years remaining uses section 141 only for those residual years and at the old-law rate.
Evidence / compliance checklist
- Maintain the original eligibility file for section 141, including commencement/approval history and the remaining deduction period.
- Keep unit-wise books and a computation linking eligible profits to the qualifying undertaking or activity (section 141: Deduction in respect of profits and gains from certain industrial undertakings).
- Where Rule 66 applies, obtain Form 32 and reconcile the accountant-certified figures to the return before the due date (section 141: Deduction in respect of profits and gains from certain industrial undertakings).
- Preserve evidence that reconstruction, transfer, location, approval and other formation conditions continue to be satisfied (section 141: Deduction in respect of profits and gains from certain industrial undertakings).
Common mistake
Treating section 141 as a fresh 2026 tax holiday. For section 141, the preserved or transitional old-law eligibility must be checked specifically; the deduction clock does not restart merely because the 2025 Act is now in force.
Recommended approach
For section 141, fix the governing tax year, identify the operative sub-section for “Deduction in respect of profits and gains from certain industrial undertakings”, trace every amount to evidence, apply only verified Rule/Form links, and retain a computation that another reviewer can reproduce from the primary source.
Thresholds, periods and timing checkpoints
- 141. In respect of any tax year, where—
- derived from such business for such tax year under the provisions of the
- (ii) the deduction under this Act shall be allowed only for such tax years,
Judicial / interpretive bridge
- Liberty India v. Commissioner of Income Tax (Supreme Court; (2009) 317 ITR 218): Useful for the “derived from” test in residual old section 80-IB claims preserved through section 141; not a substitute for checking the current transition wording and remaining eligibility period. Official Supreme Court source
Related provisions
Current statutory text
Primary-source trail
FAQs
What does section 141 of the Income-tax Act, 2025 cover?
Section 141 covers deduction in respect of profits and gains from certain industrial undertakings. The operative result depends on the exact statutory conditions shown on this page and applies from 1 April 2026, subject to transition/savings provisions.
Who should check section 141?
Eligible undertakings, enterprises or units claiming a profit-linked or transition deduction, generally subject to historical eligibility and audit conditions This applicability note is specific to section 141.
Are there specific Rules or Forms for section 141?
Rule 66 - Audit report for profit-linked deductions / Form 32