TaxTMI 
TaxTMI 
Deduction in respect of employment of new employees
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....ection (1) shall be allowed,- (a) if the business is formed by splitting up, or the reconstruction, of an existing business: Provided that nothing contained in this clause shall apply in respect of a business which is formed as a result of re-establishment, reconstruction or revival by the assessee of the business in the circumstances and within the period specified in section 33B; (b) if the business is acquired by the assessee by way of transfer from any other person or as a result of any business reorganisation; (c) unless the assessee furnishes ^15[the report of the accountant, as defined in the Explanation below sub-section (2) of section 288, before the specified date referred to in section 44AB] gi....
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....s and Miscellaneous Provisions Act, 1952 (19 of 1952); or (c) an employee employed for a period of less than two hundred and forty days during the previous year; or (d) an employee who does not participate in the recognised provident fund: ^11[Provided that in the case of an assessee who is engaged in the business of manufacturing of apparel ^12[or footwear or leather products], the provisions of sub-clause (c) shall have effect as if for the words "two hundred and forty days", the words "one hundred and fifty days" had been substituted:] ^13[Provided further that where an employee is employed during the previous year for a period of less than two hundred and forty days or one hundred and fifty days, as t....
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...., includes any profits and gains derived from any industrial undertaking engaged in the manufacture or production of article or thing, there shall, subject to the conditions specified in sub-section (2), be allowed a deduction of an amount equal to thirty per cent of additional wages paid to the new regular workmen employed by the assessee in the previous year for three assessment years including the assessment year relevant to the previous year in which such employment is provided." 3. Substituted vide Section 20 of the Finance Act, 2013 w.e.f. 01-04-2014 before it was read as, "(a) if the industrial undertaking is formed by splitting up or reconstruction of an existing undertaking or amalgamation with another indu....
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....r, for three assessment years including the assessment year relevant to the previous year in which such employment is provided.] (2) No deduction under sub-section (1) shall be allowed- ^8[(a) if the factory is acquired by the assessee by way of transfer from any other person or as a result of any business reorganisation;] (b) unless the assessee furnishes along with the return of income the report of the accountant, as defined in the Explanation below sub-section (2) of section 288 giving such particulars in the report as may be prescribed. Explanation.-For the purposes of this section, the expressions,- (i) "additional wages" means the wages paid to the new regular workmen in excess of ^9[....