Discover and read the best of Twitter Threads about #section80JJAA
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Successive Congress Govts at the Centre never incentivised job creation. They only incentivised capital investment by subsidising it by income-tax incentives like investment allowance(Sec 32A/32AC), investment deposit account(Sec 32AB) & subsidies
Mind you, India is labour abundant and capital scarce. Yet successive Congress Governments at the Centre gave industry perverse incentives to substitute labour with machinery. Not one section in Income-Tax Act was enacted to incentivise job creation
Which Govt first enacted a section in Income-Tax Act,1961 to give tax incentives to job creators? Hold your breath. It was the Vajpayee Govt which inserted #section80JJAA Deduction in respect of employment of new workmen vide Finance (No.2)Act,1998
Jobs plan is missing link in Modi's Interim Budget amid drama over data ecoti.in/pvIWJb64 (Job plan is already there since 2016 Budget. It is called #Section80JJAA of Income-Tax Act,1961. Section was rewritten to extend tax incentives for job creation to all sectors. )
That section allows employer to claim additional 30% deduction for wages paid to new employees. This is in addition to 100% of wages deduction under section 37 of the Act. Earlier, section applied to corporates in manufacturing sector,
In 2016, Modi Govt liberated the section from needless fetters imposed by UPA in 2013 and rewrote it to extend it to formal job creation in all sectors whether employer be corporate or non-corporate
#FunFact Congress which is trending hashtags against Modi did not enact any tax incentives for businesses which generated jobs. It was Vajpayeeji's Govt that enacted #Section80JJAA of Income-Tax Act in 1998. Of course, it was applicable to factory jobs only
UPA amended it in 2013 and limited deductions to Indian companies only . Then Modi Govt COMPLETELY rewrote the section in 2016 to extend the incentives for job creation to all sectors including non-corporates
Thanks to the 2016 rewrite by Modi Govt. Form NO DA audit reports from CAs which are required to be e-filed for claiming #80JJAA when aggregated will give a fair idea of formal sector jobs created for FYs 2016-17 onwards
All that @PiyushGoyal ji needs to do is to instruct his Ministry officials to aggregate Form No. 10DAs CA reports filed by employers for claiming #80JJAA year-wise for FY 2016-17 & FY 2017-18 and furnish jobs created to Parliament. Add PMRPY figures to this
Advantage of Form No.10As figures is it #80JJAA since FY 2016-17 is not based of number of employees employed by employer and as such no controversy over whether data represents new formal sector jobs created or formalisation of existing informal sector jobs
@PiyushGoyal Earlier #Section80JJAA of Income-Tax Act was for manufacturing sector companies only. Section was recast to extend job creation incentives to all sectors and non-corporate employers too and possibly also to compile jobs stats from,Form No,10DAs
