TMI BlogDeduction for employment of new workmenX X X X Extracts X X X X X X X X Extracts X X X X ..... Question - What are the proposed in Finance Bill 2015 in section 80JJAA to encourage generation of employment ? - Reply By Admin TMI - The Reply = Deduction for employment of new workmen The existing provisions contained in section 80JJAA of the Act, inter alia, provide for deduction to an Indian company, deriving profits from manufacture of goods in a factory. The quantum of deduction ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... allowed is equal to thirty per cent of additional wages paid to the new regular workmen employed by the assessee in such factory, in the previous year, for three assessment years including the assessment year relevant to the previous year in which such employment is provided. Clause (a) of sub-section (2), inter alia, provides that no deduction under sub-section (1) shall be available if the fact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ory is hived off or transferred from another existing entity or acquired by the assessee company as a result of amalgamation with another company. Explanation to the section defines Additional wages to mean the wages paid to the new regular workmen in excess of hundred workmen employed during the previous year. With a view to encourage generation of employment, it is proposed to amend the secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on so as to extend the benefit to all assessees having manufacturing units rather than restricting it to corporate assessees only. Further, 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. Accordingly, it is proposed to amend sub-section (1) of the aforesaid section. It ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is also proposed to amend clause (i) of the Explanation so as to provide additional wages to mean the wages paid to the new regular workmen in excess of fifty workmen employed during the previous year. These amendments will take effect from 1st April, 2016 and will, accordingly, apply in relation to the assessment year 2016-17 and subsequent assessment years. - Deduction for employment of new ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... workmen - Query Started By: - Admin TMI Dated:- 28-2-2015 Income Tax - Got 1 Reply - Income Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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