Additional employee cost rules: payment mode and headcount increase determine whether emoluments qualify as additional employee cost for deduction.

Definition of Additional Employee Cost as total emoluments paid or payable to additional employees during the previous year; for existing businesses it is nil if there is no increase in employee numbers from the last day of the preceding year or if emoluments are not paid by account payee cheque, account payee bank draft, electronic clearing through a bank account, or other prescribed electronic mode; in the first year of a new business such emoluments are deemed additional employee cost.

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