Conditions to be fulfilled to claim deduction u/s 80JJAA

1. Employee Incentive of 30% in the form of deduction is available only for additional employees. Additional employees must be those whose employment has the effect of increasing the total number of employees employed by the employer as on the last day of the preceding tax year.
2. Additional employees must be employed for a period of 240 days or more during the tax year. However, in case the employee does not complete the 240 day’s period in the preceding tax year due to his employment in the later half of the year, and if he completes the 240 days in next tax year, then his employment for claiming the deduction will be counted in next tax year only.
3. The additional employees for whom employment incentive is to be claimed should not have monthly emoluments greater than Rs. 25,000.
4. The additional employees should be covered under the Employee Provident Fund Scheme.
5. The emoluments are paid by the employer through account payee cheque or account payee bank draft or electronic payment system.
6. A report from Practicing Chartered Accountant in Form 10DA is to be furnished at least one month prior to the due date of furnishing Return of Income