Deduction for employment of new workmen expands eligibility but excludes factories acquired by transfer or business reorganisation. Section 80JJAA is amended to allow any assessee with manufacturing profits to claim a deduction equal to thirty per cent of additional wages paid to new regular workmen for specified assessment years; eligibility is no longer restricted to Indian companies. The deduction is disallowed where the factory is acquired by transfer or through business reorganisation. The definition of additional wages is revised to mean wages paid in excess of fifty workmen employed in the previous year. These amendments take effect from 1 April 2016.
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Provisions expressly mentioned in the judgment/order text.
Deduction for employment of new workmen expands eligibility but excludes factories acquired by transfer or business reorganisation.
Section 80JJAA is amended to allow any assessee with manufacturing profits to claim a deduction equal to thirty per cent of additional wages paid to new regular workmen for specified assessment years; eligibility is no longer restricted to Indian companies. The deduction is disallowed where the factory is acquired by transfer or through business reorganisation. The definition of additional wages is revised to mean wages paid in excess of fifty workmen employed in the previous year. These amendments take effect from 1 April 2016.
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