{"id":5578,"date":"2023-12-28T09:29:09","date_gmt":"2023-12-28T03:59:09","guid":{"rendered":"https:\/\/gstguntur.com\/?p=5578"},"modified":"2023-12-28T17:54:54","modified_gmt":"2023-12-28T12:24:54","slug":"deduction-in-respect-of-employment-of-new-employee-under-section-80jja","status":"publish","type":"post","link":"https:\/\/gstguntur.com\/deduction-in-respect-of-employment-of-new-employee-under-section-80jja\/","title":{"rendered":"Section 80JJA – Deduction In Respect Of Employment Of New Employee"},"content":{"rendered":"

Deduction in Respect of Employment of New Employee Under Section 80JJA:<\/strong> To promote employment generation activities, the Indian Government has introduced Section 80JJAA. Section 80JJA was substituted by Finance Act 2016, which came into effect from FY 2016-17. The 80JJA renders the deduction to an employer for generating employment. The 80JJA section applies to all corporate and non-corporate assessee. It is also suitable for non-resident conducting business in India. It is applicable to an assessee to whom section 44AB applies, i.e. applicable to a person who is obliged to get his account audited by an accountant. A deduction is permitted where the total gross income of an assessee constitutes any profits and gains obtained from the business. Therefore, the deduction is not open to an assessee taking on any other profession.<\/p>\n

Who Can Claim the Deduction?<\/h2>\n

A deduction is available to the assessee who is expected to get his ledgers of accounts audited under Section 44AB, and their income should include profit and gains received from the business. The deduction will not be allowed if the business is created by dividing or renovating an existing business. It does not include those circumstances in which the business is re-constructed or re-established or restored due to the reason asserted under Section 33B (flood, riot, fire, earthquake, typhoon, explosion, enemy attack etc.) Even if the business is procured by transference from any other person, the assessee will not be able to claim the deduction.<\/p>\n

Section 80JJA Deduction Structure<\/h3>\n
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  1. The deduction is equivalent to 30% of the additional employee cost for three consecutive assessment years starting from the preceding year in which such additional cost is incited in the course of such business. An assessee must file an income tax return and a Chartered Accountant report in Form 10DA to claim a deduction like that.<\/li>\n<\/ol>\n

    For Example:<\/strong> If additional employee cost acquired during the previous year 2018-19 is Rs. 1,00,000, then deduction under section 80JJA will be :<\/p>\n