Deduction in respect of Employment of New Employees - (New) Section 146 / (Old) Section 80JJAA

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....nder section 63.  • Additional employee cost should exist. Quantum of Deduction • The assessee is entitled to claim a deduction equal to 30% of the additional employee cost incurred during the tax year. "Additional employee cost" means • (i) the total emoluments paid or payable to additional employees employed during the tax year; or • (ii) emoluments paid or payable to employees employed during the tax year, where that year is the first year of a new business, and it shall be nil in the case of an existing business, if- • (A) there is no increase in the number of employees from the total number employed as on the last day of the preceding tax year; or ....

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....result of the re-establishment, reconstruction or revival by the assessee of the business of any such undertaking as is referred to in section 140(4). • (b) the business is acquired by the assessee through transfer from any other person or as a result of any business reorganisation; or • (c) the assessee does not furnish the report of an accountant, before the specified date as referred to in section 63, giving the particulars in the report, as may be prescribed. • Furnishing a report is required by the assessee along with the return of income shall be in Form No. 34. [ Rule 68 ] Meaning of Additional Employee  "Additional employee" means • An employee w....

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....nbsp;Section 80JJAA of the Income Tax Act, 1961 and  Read with Rule 19AB of the Income Tax Rule 1962 [ Upto 31.03.2026 ] Section 80JJAA deduction of the Income Tax Act can be claimed by all assessees for employment generation. Section 80JJAA deduction is aimed at generating employment in all sectors. 1. Eligible Assessee Where the gross total income of an assessee to whom section 44AB applies, includes any profits and gains derived from business 2. Quantum of Deduction • 30% of the additional employee cost incurred • "Additional employee cost" means: • i. In case of a new business - emoluments paid or payable to employees employed during that previous year sha....