Deduction for new employees requires business income, audit compliance, and qualifying additional employee cost under prescribed conditions.

Deduction for employment of new employees is available to an eligible assessee whose business income is subject to audit, at 30% of the additional employee cost. The deduction continues for three consecutive tax years, but is denied where the business is formed by splitting up, reconstruction, transfer or reorganisation, or where the prescribed accountant's report is not furnished with the return. An additional employee must increase total employee strength and satisfy the stated salary, provident fund and minimum-period conditions.

---

---

---