Bonus to employee

This query is : Resolved

P dandekar (Querist)
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09 November 2012 Sir,

Can anyone help to know whether an employee can claim Bonus even if he/she leaves the company?
Pl reply soon.

Regards
P Dandekar

CA SAYANTAN BASU

CA SAYANTAN BASU (Expert)
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10 November 2012 DEAR SIR ,

AS PER BONUS PAYMENT ACT 1965 THE BONUS CAN BE PAID TILL 8 MONTHS FROM THE END OF THE FINANCIAL YEAR .... EXTENSIBLE TO 2YEARS .... SO SUPPOSE MR A HAS BEEN WORKING IN F.Y.2012 -13 IN THE COMPANY BUT HE HAS LEFT THE COMPANY ON 01.04.2012 . IN THAT CASE HE CAN CLAIM THE BONUS IF IT IS DECLARED .... BONUS DECLARED BEFORE THE LEAVING OF THE COMPANY IS BEEN ALLOWED TO BE GIVEN ....

P dandekar

P dandekar (Querist)
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12 November 2012 The employee is working in a small size pvt ltd co reg under company act.

Though the company do not compliance to the Bonus Act strictly Yet the bonus is given to the employees every yr.

One of the employee worked in the co for 7 yrs He resigned the company on september 30 2012. Can he not claim for the bonus( FY 2011-2012) ? Is this not the liability of the company to pay bonus of the last yr or just b'cause he resigned they refuse to pay him.
He has accordingly requested the company for the same but the company has not replied as yet.

If the company do not pay the Bonus what should be done.

Pl reply .

Regards
Pdandekar

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CA SAYANTAN BASU

CA SAYANTAN BASU (Expert)
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15 November 2012 Dear sir ,
As because it does not come under bonus act 1965 therefore , the provisions of bonus act is not applicable .... therefor e the company may or maynot pay the bonus .....
However as per income tax act 1961 it has been stated that if the company makes the provision then no deduction under income tax be done .....if the bonus is not paid .... So if the amount of the bonus of the retrenched employee is being included in the provisions then in that case no deduction will be allowed if the payment is not being made to the retrenched employee ............