Question ID :
44757
Section 80JJAA
For claiming deduction under section 80JJAA, whether contract labourers are to be considered. Due to contract workers, the head count at the end of the year increases compared with that at the beginning of the year.
Posted by
balasubramanian
on
Dec 09, 2024
Filed Under
DIRECT TAXES
contract workers are typically not considered for the purpose of computing additional employee count under this section. This is because "contract workers" are not usually treated as "regular workmen" employed on a salary basis by the company.
For claiming this deduction:
The additional employee should be employed on a salary basis and contribute to provident fund.
The increase in headcount due to contract workers would not qualify if they are not directly employed and on the payroll of the employer.
Specific rules and judicial clarifications may apply to determine eligibility in unique cases.
Posted by
CA. SURAJ KUMAR CHOUDHARY on
Dec 11, 2024
Answer ID :
85542
The very idea behind introduction of Section 80JJAA is job creation and Employment. Employer and Employee Relation is must and Employee must have worked 240 days in that previous year. Considering these, Contract Labour is out of question and you cannot claim benefit.
Posted by
Rupakula Rajasekhar on
Dec 31, 2024
Answer ID :
85552
It appears on reading of the provision that only on appointment as employee one can claim
Posted by
SIVADAS CHETTOOR on
Jan 02, 2025