Budget 2018: I-T laws tweaked to incentivise more hiring


Amid mounting criticism over lack of job opportunities, finance minister Arun Jaitley on Thursday proposed changes in existing income tax laws to incentivise companies to hire more.

The Finance Bill 2018 proposed changes in the existing provisions of Section 80JJAA that provide for a deduction of thirty percent of additional wages paid to new regular workmen in a factory for three years.

Under the proposed new rules of Section 80JJAA, companies with a turnover of Rs 1 crore more are eligible to claim tax benefits for new employment created by them. The measure will allow companies to claim 30 percent of additional employee cost as deduction for three years, including the year in which the new hiring has happened.