friends plzzz explain the concept of allocable surplus in case of bonus act
thanks in advance
cheers
Arniv Sharda (CA Final) (3006 Points)
25 March 2011friends plzzz explain the concept of allocable surplus in case of bonus act
thanks in advance
cheers
U S Sharma
(glidor@gmail.com)
(21056 Points)
Replied 12 May 2011
What is the principle of set on and set off of allocable surplus?:
The principle of set on and set off of allocable surplus is as follows:
Where for any year the allocable surplus exceeds the amount of maximum bonus payable to the employees, then, the excess shall, subject to a limit of twenty percent of the total salary or wages of the employees, be carried forward for being set on in the succeeding year and so on to be utilized for the purpose of payment of bonus.
Where for any year there is no available surplus, or the allocable surplus in respect of that year falls short of the amount of minimum bonus payable to the employees, and there is no amount or sufficient amount carried forward and set on which could be utilized for the purpose of payment of the minimum bonus, then, such minimum amount or the deficiency, as the case may be, shall be carried forward for being set off in the succeeding year and so on. {Section 15}
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