Fact-check notes
Last fact-checked: 2026-05-27
Transition rule: AY 2026-27 covers FY 2025-26 and continues under the Income-tax Act, 1961. The Income-tax Act 2025 Tax Year language applies for income earned from 1 April 2026 onward.
This Batch 12 page avoids treating future-dated payroll/form/rule changes as final filing advice. Verify the active form, notification, payroll circular or portal utility before implementation.
What this covers
Section 80JJAA can reward eligible new hiring, but payroll conditions and audit documentation are strict. Check whether it is available under the chosen regime and applicable year.
- 30% additional employee cost deduction may apply for eligible new employees.
- Wage and minimum-day conditions need employee-level tracking.
- Audit report and payroll records are critical.
Who this is for
- Startup hiring junior employees.
- SME scaling headcount.
- CA preparing tax audit.
- Founder planning payroll budget.
Documents and data to verify
- Payroll register.
- PF/ESI records.
- Employee joining dates.
- Salary thresholds and audit report.
Common mistakes to avoid
- Counting ineligible high-wage employees.
- No 240-day tracking.
- No audit support.
- Claiming for replacement hires incorrectly.
How to proceed
- Confirm the applicable year, taxpayer type, form, state and portal status before acting.
- Reconcile portal data with payslips, books, invoices, Form 16/26AS/AIS, GST returns, EPFO records or contracts.
- Prepare a written computation, filing note, checklist or response with assumptions clearly stated.
- Download acknowledgements, challans, workings and evidence after filing or submission.
FAQs
Can WorkIndex help with this?
Yes. Post the facts and documents; relevant experts can quote for filing, advisory, reconciliation, registration, appeal support or ongoing compliance.
Is this page final legal advice?
No. Use it to prepare. A professional should verify the active law year, notification, portal utility and records before filing or taking a tax position.
What should I mention while posting?
Mention the year, state, form, deadline, amount involved, documents available, portal status and whether you need filing, correction, advisory or representation.