Deduction Under Section 80JJAA - Towards Additional Employment in Units
Section of 80JJAA of Income Tax Act, 1961 has been amended with effect from 1st of April 2017 with the following objectives: To facilitate job creation and employment generation. To promote cashless economy by mandating the employers to make payments by banking channels. To achieve better profitability by helping the Organisations reduce their Employee Cost by providing additional deduction. Applicability : The Section is applicable to all the assesses who are earning income under the head Business and Profession and Tax Audit Provisions under section 44AB are applicable i.e., Gross Sales should be more than Rs.1.00 Crore in a financial year. Benefit: The assessee can claim deduction of 30% of additional employee cost incurred during the year as expenditure, for a period of 3 assessment years. Conditions: 1. New Recruitments should be made in the previous year starting i.e.: from financial year ...


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