The Statutory Brief

IT Act 1961 → 2025 / Section 10AA

Deductions

Section 10AA → Section 144

SEZ unit deduction (continuing claims)

Section 10AA of the old Income-tax Act, 1961 · new section 144 under the Income-tax Act, 2025

New reference Section 144

Income-tax Act, 1961Section 10AA

  • Deduction for SEZ units: 100% for 5 years, 50% for next 5, 50% for 5 more subject to reinvestment
  • Available only to units that began operations on or before 31 March 2020 (assessment year before 1 April 2021)

Applies to FY 2025-26 (AY 2026-27) and earlier years.

Income-tax Act, 2025Section 144

  • Section 144 allows continuing units to keep claiming as per old 10AA
  • Computed exactly as under 10AA for the remaining years

Applies from tax year 2026-27 (from 1 April 2026).

What changed

Transitional: section 144 preserves the remaining 10AA benefit.

Practice notes

  • Not available to companies opting for section 200 (22%).

These are summaries, not the statutory text. Read the bare Act for both sections on the Income Tax Department's official site, which also has a side-by-side comparison utility.

Frequently asked

Is SEZ deduction available under the new Income Tax Act 2025?

Yes, for existing eligible units, under section 144, computed as per old section 10AA for the remaining years.

What is section 10AA called in the new Income-tax Act, 2025?

Section 10AA of the Income-tax Act, 1961 corresponds to Section 144 of the Income-tax Act, 2025, which applies from 1 April 2026 (tax year 2026-27).

What changed in section 10AA under the new Income Tax Act?

Transitional: section 144 preserves the remaining 10AA benefit.

Is section 10AA still applicable for FY 2025-26?

Yes. Income of FY 2025-26 (AY 2026-27) and earlier years is governed by section 10AA of the 1961 Act. Section 144 of the 2025 Act applies from tax year 2026-27.

Related sections

115BAA→200Concessional 22% tax rate option for domestic companies80-IAC→140100% profit deduction for eligible start-ups for 3 out of 10 years35AD→46100% deduction of capital expenditure for specified businesses (warehousing, hotels, hospitals, pipelines, etc.)