TaxTMI 
TaxTMI 
Question - What are the proposed in Finance Bill 2015 in section 80JJAA to encourage generation of employment ?
Deduction for employment of new workmen
28 Feb 2015 
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Deduction for employment of new workmen extended to all manufacturers and threshold lowered to aid smaller units.
The deduction equals thirty per cent of additional wages paid to new regular workmen by a manufacturing unit for a three year period. The Finance Bill proposes to extend this deduction to all assessees with manufacturing units (not just companies) and to lower the base threshold for computing "additional wages" so smaller units can claim the incentive. Existing exclusions for hived off or transferred factories and acquisitions by amalgamation remain. The amendments are prospective and apply from the designated fiscal year onwards. (AI Summary)
The deduction equals thirty per cent of additional wages paid to new regular workmen by a manufacturing unit for a three year period. The Finance Bill proposes to extend this deduction to all assessees with manufacturing units (not just companies) and to lower the base threshold for computing "additional wages" so smaller units can claim the incentive. Existing exclusions for hived off or transferred factories and acquisitions by amalgamation remain. The amendments are prospective and apply from the designated fiscal year onwards. (AI Summary)