DEDUCTION OF 30% OF ADDITIONAL WAGES FOR ORGANIZATION ENGAGED IN MANUFACTURE OR PRODUCTION OF ANY ARTICLE,IF IT HIRES MORE THAN 100 EMPLOYEES OR 10% OF EMPLOYEES OF PRECEEDING YEAR,WHICH EVER IS HIGER80JJAA.Deduction in respect of employment of new workmen.
(1) Where the gross total income of an assessee, being an Indian company, includes any profits and gains derived from the manufacture of goods in a factory, 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 such factory, 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 factory is hived off or transferred from another existing entity or acquired by the assessee company as a result of amalgamation with another company;
(b) unless the assessee furnishes along with 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 paid to the new regular workmen in excess of one hundred workmen employed during the previous year :
Provided that in the case of an existing factory, the additional wages shall be nil if the increase in the number of regular workmen employed during the year is less than ten per cent of existing number of workmen employed in such factory 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).
(iv) “factory” shall have the same meaning as assigned to it in clause (m) of section 2 of the Factories Act, 1948.