Section 80 JJAA of Income Tax Act
Deduction on employment of New Workmen
This deduction is only for Indian company which is factory. Any person whose GTI inckudes profit and gains derived from manufacture of goods in a factory
Deduction is
30% of Additional wages
Paid to new workmen employed during the year
Note:-
Additional wages means
Wages paid to new workmen in excess of 100 Workmen 50 Workmen employed
during previous year
-
No deduction allowed if there is less than 10% increase in case as compared to previous year
- Report from CA in prescribed Form 10DA required.
Note: -
New workmen should not be due to
- Transfer from existing business
- Amalgamation with Another Company
Effect of Amendment
| Before Amendment | After Amendment |
|
Additional Wages meant wages paid to new workmen in excess of 100 workers employed |
Additional Wages meant wages paid to new workmen in excess of 50 workers employed |
| Deduction only to Indian Company which is a factory | Deduction available to all types of assessee whose GTI includes profit and gains from manufacturing business |
No deduction under this section if
- Not a factory
- Not having 50 employees
- Not more than 10% increase
- Workmen employed are Casual /temporary/ contractual / employed for less than 300 days
