Cash Back for those who Generate New Employment Deduction under Section 80JJAA of the Income Tax Act, 1961: - Analysis, Challenges & Courts’ Decisions

Abstract

The benefit of deduction under section 80JJAA of the Income-tax Act makes the business houses highly motivated for generating new employment because additional deduction of 30 per cent for three years (aggregate 90 per cent) can reduce the handsome amount of tax liability. It is important to note that this additional benefit is allowed over and above the deduction of 100 per cent of wages/salaries under section 37 of the Act. A researcher has made an attempt to analyse the provisions of this section and dealt with its practical aspects.