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Section 80JJAA – Income Tax Act, 1961

Income Tax Act, 1961




(1) Where the gross total income of an assessee, being an Indian company, includes any profits and gains derived from any industrial undertaking engaged in the manufacture or production of article or thing, there shall, subject to the conditions specified in sub-section (2), be allowed a deduction of an amount equal to thirty per cent of additional wages paid to the new regular workmen employed by the assessee in the previous year for three assessment years including the assessment year relevant to the previous year in which such employment is provided.


(2) No deduction under sub-section (1) shall be allowed – 


(a) If the industrial undertaking is formed by splitting up or reconstruction of an existing undertaking or amalgamation with another industrial undertaking;


(b) Unless the assessee furnishes alongwith the return of income the report of the accountant, as defined in the Explanation below sub-section (2) of section 288 giving such particulars in the report as may be prescribed. 


Explanation : For the purposes of this section, the expressions, – (i) “Additional wages” means the wages said to the new regular workman in excess of one hundred workmen employed during the previous year :


Provided that in the case of an existing undertaking, the additional wages shall be nil if the increase in the number of regular workman employed during the year is less than ten per cent of existing number of workmen employed in such undertaking as on the last day of the preceding year;


(ii) “Regular workman”, does not include – (a) A casual workman; or


(b) A workman employed through contract labour; or


(c) Any other workman employed for a period of less than three hundred days during the previous year;


(iii) “Workman” shall have the meaning assigned to it in clause (s) of section 2 of the Industrial Disputes Act, 1947 (14 of 1947).



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Income Tax Act, 1961 


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