Section - 80JJAA provides a deduction of 30 per cent [ in addition to normal deduction of 100 per cent under section 37(1) ] in respect of emoluments paid to eligible new employees who have been employed for a minimum period of 240 days during the year. However, the minimum period of employment is relaxed to 150 days in the case of apparel industry.
The following amendments have been made with effect from the assessment year 2019-20 —
Tn order to encourage creation of new employment, the above concession of 150 days has been extended to footwear and leather industry. After the amendment, in the case of business of manufacturing of apparel, footwear or leather products, the minimum number of days of employment in the years of employment shall be 150 days in place of 240 days.
Where a new employee is employed during the previous year for a period of less than 240 days (or 150 days, as the case may be) but is employed for a period of 240 days (or 150 days, as the case may be), in the immediately succeeding year, he shall be deemed to have been employed in the succeeding year and the provisions of section 80JJAA shall apply accordingly.