Income Tax Solar Rooftop panel

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This discussion clarifies whether a partnership firm acting as a channel partner for solar rooftop panel sales and installation can benefit from Section 80-IA of the Income Tax Act. The general consensus is that eligibility hinges on directly owning or operating a power generation plant, rather than merely providing sales and installation services. If your firm's profits stem from the power generated and distributed, you may qualify; otherwise, the tax benefit typically applies to the system owner.

R Hiremath

R Hiremath (Querist)
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16 October 2025 Sir, I have a partnership firm, working as a Channel Partner and provide Sales and Installation of Solar Rooftop Panel to customers. Can I get benefit under section 80-IA? Kindly guide me...

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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16 October 2025 If your partnership firm is only acting as a sales intermediary (i.e., just supplying and installing panels without actually owning or operating a power generation plant), eligibility for section 80-IA deductions might not apply. The main qualifying activity is "generation or distribution of power" rather than just the sales or installation service.

As a Channel Partner, if your direct business profits are from owning, operating, or generating power using solar rooftop systems, you should be eligible, but if you merely install solar panels on behalf of others who generate power, the benefit usually accrues to the system owner, not to you as an intermediary.

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R Hiremath

R Hiremath (Querist)
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16 October 2025 Thank your for the response sir

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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16 October 2025 You are welcome.

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