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 is a payroll-linked deduction that needs employee-wise eligibility tracking and audit support. Verify applicability in the chosen regime and year.
- Deduction may be 30% of eligible additional employee cost for three years.
- Wage threshold and minimum working-days rule are critical.
- Payroll records must support the claim.
Who this is for
- Startup or SME hiring employees.
- CA preparing tax audit.
- Payroll team tracking eligibility.
- Founder modelling hiring tax benefit.
Documents and data to verify
- Employee master.
- Salary register.
- PF/ESI records.
- Joining dates and days worked.
Common mistakes to avoid
- Counting ineligible employees.
- No audit report support.
- Ignoring wage threshold.
- No continuity tracking for three years.
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.