Additional employees under 80JJAA

Great question on Section 80JJAA eligibility!

Here’s the key point for claiming deduction under Section 80JJAA:

• The deduction is available for new employees employed for at least 240 days during the relevant previous year.

• For employees who did NOT complete 240 days in the earlier year, you cannot carry forward their eligibility to the next year.

• The 240-day employment condition is to be met in the particular financial year to claim deduction for that year.

Applying to your case:

• For FY 21-22: Only 4 employees completed 240 days → deduction allowed only for those 4.

• For FY 22-23: You have 24 employees, out of which only those who individually complete 240 days in FY 22-23are eligible.

• The employees from 21-22 who did not complete 240 days in 21-22 cannot be counted as eligible in 22-23 unless they again qualify by completing 240 days in 22-23.

• So, you cannot include 8 employees from 21-22 in 22-23 deduction just because they became eligible later.

• Deduction is strictly for employees who complete 240 days within the same FY for which deduction is claimed.

Summary:

• Eligible employees in 22-23 = only those who actually completed 240 days in FY 22-23.

• No carry-forward of partially completed employees from previous years.