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.

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.