Tax benefit for skill development available only on new recruits

The finance ministry has said that the benefit of deducting one and a half times the spending on skill development of employees when businesses calculate their taxable income will be available only if spent on new recruits. According to the rules the revenue department notified on July 15 for granting the benefit of weighted deduction of 150% of the spending on skill development projects to companies, spending on existing employees will not be eligible if their training starts after six.