Section 80JJAA: Deduction For Employment of New Employees
Section 80JJAA Overview: A key provision incentivizing job creation in India's Income Tax Act.
Objective: Encourages businesses to expand their workforce, fostering economic growth.
Definition of Additional Employees: Those hired within the preceding year meeting specific criteria.
Applicability: Mandatory for audited entities under section 44AB, with exceptions.
Deduction Details: Allows for 30% deduction of additional employee costs over three years.
Criteria for Qualification: Business operational for 240 days, employing at least ten individuals.
Form 10DA Submission: Essential for claiming the deduction, requiring careful preparation and timely submission.
Example Illustration: Demonstrates eligibility and deduction calculation scenarios.