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section 80JJAA FY 2016-2017

Rajesh Kumar Gupta (Practice) (40 Points)

19 May 2017

Regarding section 80JJAA My question is if a co. Claimed deduction under 80jjaa in FY 2015-2016 (I.e., 1st year) on additional 100 employees. In 2nd year it can claim deduction on same employees (100) if further increase in employees (say 20). So total deduction will be for 120 or 20? Moreover if there's no further increase can it claim only on 100?

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5 Replies

ROHIT YADAV (Finance Analysist) (607 Points)
Replied 19 May 2017

deduction is spread over three years I.e. deduction u/s 80jjaa shall be allowed for 3 assessment year.
in your case in 3rd year deduction will allow for 120 employees I.e. 100+20. 4th year and 5th year

ROHIT YADAV (Finance Analysist) (607 Points)
Replied 19 May 2017

in 4th and 5th year deduction for only 20 employees will be allowed.
in other case case if no addition employee then only 100 employees deduction will be allowed in 3rd year. no further deduction.

Rajesh Kumar Gupta (Practice) (40 Points)
Replied 20 May 2017

in the second year i.e., 2016-17 if there is no increase in employees , will the co. claim deduction of same amount that it claimed in 2015-16.

Ranjana Gupta (2 Points)
Replied 31 August 2017

If there is increase of 10 employees in Fy 15-16 for eg. Take rs.100000 is ncreased salary then deduction in Fy 15-16 will be 30000(30% of 1 lac)..In FY 16-17 deduction will be 30000 again and so as in next year..Take the increased employee's cost as separate from other to calculate additional benefit.