I just wanted to know about the maximum bonus which is payable to employees? I have read in the act that it is 20%. But i just wanted to know those companies which are paying 100% (one month salary) as bonus whether they are not statutorily correct or what? Also tell me if such bonus is disallowed under income tax act?
06 September 2011
NORMALLY BONUS ARE PAID 8.33 % OF THE MONTHLY SALARY EARNED WHICH COME EQUAL TO ONE MONTH SALARY IF EMPLOYEE HAS RENDERED HIS SERVICES DURING THE WHOLE YEAR.
IN YOUR CASE COMPANIES CALCULATION REGARDING YO BONUS IS CORRECT.
06 September 2011
Thanks sir, one more question i want to ask...it is written in the act the for calculation purpose Rs. 3500 will be taken even if salary or wage is higher than Rs. 3500. However while calculating one month bonus companies take gross salary. Tell me whether it is correct.
CAclubindia
