Section 80JJAA read with 40A(3)

This discussion clarifies the interplay between Section 80JJAA and Section 40A(3) of the Income Tax Act regarding cash salary payments. While Section 80JJAA encourages new businesses by allowing deductions for employing new workers, Section 40A(3) disallows expenses, including salaries, paid in cash exceeding ₹10,000 per person. Therefore, paying salaries in cash, even in the first year of business, would likely be disallowed under Section 40A(3), impacting the eligibility for 80JJAA deductions.