Explanation
Section 80IA provides a 100% deduction from profits and gains derived from specified infrastructure businesses. Eligible undertakings include: generation, transmission, or distribution of power; laying and operating telecommunication networks; development, maintenance, and operation of infrastructure facilities (roads, highways, bridges, airports, ports, inland water transport, water supply pipelines); development of industrial parks and SEZs; laying of natural gas distribution networks; and development of housing projects under government schemes. The deduction is available for any 10 consecutive assessment years out of a block of 15–20 years beginning from the year the undertaking begins operations (the block length varies by category). The deduction is available only under the old tax regime — companies under §115BAA or §115BAB cannot claim §80IA. This section is heavily litigated: courts have addressed issues including the meaning of 'develops', related-party transactions, year of commencement, and whether service providers to infrastructure qualify. Given most sunset dates have passed, §80IA is relevant primarily for units already claiming it. Legal counsel is essential before making new claims. Verify on the income-tax portal before filing.