80JJAA. Deduction in respect of employment of new employees.
(1)Where the gross total
income of an assessee to whom section 44AB applies, includes any profits and gains derived from
business, 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 employee cost incurred in the course of suc h business 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 business is formed by splitting up, or the reconstruction, of an existing business:
Provided that nothing contained in this clause shall apply in respect of a business which is formed
as a result of re -establishment, reconstruction or revival by the assessee of the business in the
circumstances and within the period specified in section 33B;
(b)if the business is acquired by the assessee by way of transfer from any other person or as a
result of any business reorganisation;
(c)unless the assessee furnishes alongwith the retur n of income the report of the accountant, as
defined in the Explanation to section 288 giving such particulars in the report as may be prescribed.
Explanation .-For the purposes of this section, -
(i)“additional employee cost” means total emoluments paid o r payable to additional employees
employed during the previous year:
Provided that in the case of an existing business, the additional employee cost shall be nil, if-
(a)there is no increase in the number of employees from the total number of employees
employed as on the last day of the preceding year;