Bonus paid to employees is a appropriation of profit or charge against profit...
if a charge, its tax treatment?
Sumit Grover
(Chartered Accountant )
(3652 Points)
Replied 15 July 2011
it is a charge against profit.........
tax treatment---- fully allowed, even if paid above minimum bonus as per PAYMNTS OF BONUs ACT
however, it is to be ensured dat bonus is paid till the date of filing of return of income---section 43B
valji
(Accounts manager-MBA)
(2150 Points)
Replied 15 July 2011
bonus allowed under sec 43 b on payment basis
if last year bonus paid in current year then allowed as expenses in current year
Live class on PF & ESI Enrollment & Returns Filing(with recording)
CAclubindia
