Is it necessary that an assessee intending to claim deduction u/s 80JJAA of the Income Tax Act should employ more than 50 NEW REGULAR workmen as per amended provisions ?
Or is it sufficient that more than 50 WORKMEN are employed during the year ?
Doubt regarding section 80jjaa
Replies (3)
The basic essence of the section is to encourage generation of employment. It is therefore necessary that the assessee shall employ NEW regular employees to claim deduction @ 30% on additional wages. Additional wages means "to mean the wages paid to the new regular workmen in excess of one hundred workmen employed during the previous year."
Madam the limit of 100 workmen has now been reduced to 50. My doubt is whether 50 refers to NEW REGULAR workmen ? Or all workmen put together ?
I found different interpretations in Institute material and other books.
In order to enable the smaller units to claim this incentive, it is proposed to extend the benefit under the section to units employing even 50 instead of 100 regular workmen.
50 refers to new regular workmen.
Recent Topics :
- Bill-to-ship-to material at client site, project c
- Export previously now to be considered domestic sa
- Pan surrender via online
- EPFO Portal Issue – Unable to Save Employee
- Plant & Machinary
- ITC reversal after supplier amended the recipient
- GIFTS TO USEFUL CONTACTS ON FESTIVALS INCOME TAX
- INTEREST ON REFUND OF TDS
- Input tax claim related
- User not found in MCA portal
Related Topics :
CAclubindia
