The Union Minister for Finance and Corporate Affairs, Shri Arun Jaitley has proposed to extend the benefits under Section 80-JJAA of the Income-tax Act to footwear and leather industry. While presenting the General Budget 2018-19 in Parliament here today, the Union Finance Minister said, “Currently, a deduction of 30% is allowed in addition to normal deduction of 100% in respect of emoluments paid to eligible new employees who have been employed for a minimum period of 240 days during the year under section 80-JJAA of the Income-tax Act.” He however, noted that the minimum period of employment is relaxed to 150 days in the case of apparel industry. Extending this relaxation of minimum period of 150 days to footwear and leather industry also, the Finance Minister hoped this would encourage creation of new employment in this sector.

Shri Jaitley further proposed to rationalise deduction of 30% by allowing the benefit for a new employee who is employed for less than the minimum period during the first year but continues to remain employed for the minimum period in subsequent year.

Section 80-JJAA benefits extended to footwear and leather industry, relaxing minimum employment criteria to spur hiring. Extension of Section 80-JJAA benefits to the footwear and leather industry relaxes the minimum employment-period threshold to align with the apparel sector, permitting those employers to claim the employment-linked deduction. The measure also rationalises deduction timing by allowing the additional deduction where a new employee works less than the minimum period in the first year but completes the required service in a subsequent year, thereby supporting sustained employment creation.