Income Tax Act, 2025
Section 2: Subs. by Act 27 of 1999, s. 51, for “, producing bio-gas” (w.e.f. 12000).
2. Subs. by Act 27 of 1999, s. 51, for “, producing bio-gas” (w.e.f. 12000).
3. Subs. by s. 51, ibid., for “a deduction from such profits and gains of an amount equal to the whole of such income, or five
lakh rupees, whichever is less” (w.e.f. 12000).
4. Subs. by Act 28 of 2016, s. 45, for section 80JJAA (w.e.f. 12017). Earlier section 80JJAA was inserted by Act 21 of
1998, s. 36 (w.e.f. 11999).
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(b) emoluments are paid otherwise than by an account payee cheque or account payee bank
draft or by use of electronic clearing system through a bank account:
Provided further that in the first year of a new business, emoluments paid or payable to
employees employed during that previous year shall be deemed to be the additional employee
cost;
(ii) “additional employee” means an employee who has been employed during the previous year
and whose employment has the effect of increasing the total number of employees employed by the
employer as on the last day of the preceding year, but does not include,—
(a) an employee whose total emoluments are more than twenty-five thousand rupees per
month; or
(b) an employee for whom the entire contribution is paid by the Government under the
Employees’ Pension Scheme notified in accordance with the provisions of the Employees’
Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952); or
(c) an employee employed for a period of less than two hundred and forty days during the
previous year; or
(d) an employee who does not participate in the recognised provident fund:
1[Provided that in the case of an assessee who is engaged in the business of manufacturing of
apparel, 2[or footwear or leather products] the provisions of sub-clause (c) shall have effect as if
for the words “two hundred and forty days”, the words “one hundred and fifty days” had been
substituted:]
1[Provided further that where an employee is employed during the previous year for a period
of less than two hundred and forty days or one hundred and fifty days, as the case may be, but is
employed for a period of two hundred and forty days or one hundred and fifty days, as the case
may be, in the immediately succeeding year, he shall be deemed to have been employed in the
succeeding year and the provisions of this section shall apply accordingly;]
(iii) “emoluments” means any sum paid or payable to an employee in lieu of his employment by
whatever name called, but does not include—
(a) any contribution paid or payable by the employer to any pension fund or provident fund
or any other fund for the benefit of the employee under any law for the time being in force; and
(b) any lump-sum payment paid or payable to an employee at the time of termination of his
service or superannuation or voluntary retirement, such as gratuity, severance pay, leave
encashment, voluntary retrenchment benefits, commutation of pension and the like.
(3) The provisions of this section, as they stood immediately prior to their amendment by the Finance
Act, 2016, shall apply to an assessee eligible to claim any deduction for any assessment year commencing
on or before the 1st day of April, 2016.]
80K. [Deduction in respect of dividends attributable to profits and gains from new industrial
undertakings or ships or hotel business].—Omitted by the Finance Act, 1986 (23 of 1986), s. 19
(w.e.f. 11987).
emoluments are paid otherwise than by an account payee cheque or account payee bank
draft or by use of electronic clearing system through a bank account:
Provided further that in the first year of a new business, emoluments paid or payable to
employees employed during that previous year shall be deemed to be the additional employee
cost;
“additional employee” means an employee who has been employed during the previous year
and whose employment has the effect of increasing the total number of employees employed by the
employer as on the last day of the preceding year, but does not include,—
an employee whose total emoluments are more than twenty-five thousand rupees per
month; or
an employee for whom the entire contribution is paid by the Government under the
Employees’ Pension Scheme notified in accordance with the provisions of the Employees’
Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952); or
an employee employed for a period of less than two hundred and forty days during the
previous year; or
an employee who does not participate in the recognised provident fund:
1[Provided that in the case of an assessee who is engaged in the business of manufacturing of
apparel, 2[or footwear or leather products] the provisions of sub-clause
shall have effect as if
for the words “two hundred and forty days”, the words “one hundred and fifty days” had been
substituted:]
1[Provided further that where an employee is employed during the previous year for a period
of less than two hundred and forty days or one hundred and fifty days, as the case may be, but is
employed for a period of two hundred and forty days or one hundred and fifty days, as the case
may be, in the immediately succeeding year, he shall be deemed to have been employed in the
succeeding year and the provisions of this section shall apply accordingly;]
“emoluments” means any sum paid or payable to an employee in lieu of his employment by
whatever name called, but does not include—
any contribution paid or payable by the employer to any pension fund or provident fund
or any other fund for the benefit of the employee under any law for the time being in force; and
any lump-sum payment paid or payable to an employee at the time of termination of his
service or superannuation or voluntary retirement, such as gratuity, severance pay, leave
encashment, voluntary retrenchment benefits, commutation of pension and the like.
The provisions of this section, as they stood immediately prior to their amendment by the Finance
Act, 2016, shall apply to an assessee eligible to claim any deduction for any assessment year commencing
on or before the 1st day of April, 2016.]
80K. [Deduction in respect of dividends attributable to profits and gains from new industrial
undertakings or ships or hotel business].—Omitted by the Finance Act, 1986 (23 of 1986), s. 19
(w.e.f. 11987).