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Bonus amount

Arunachalam (Proprietor) (186 Points)

26 December 2018

Dear all:

Do we need to include the bonus amount received as part of income from salary? or should that be shown as income from other sources?

Awaiting your answer

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4 Replies

Aman Kumar (Accounts Executive) (744 Points)
Replied 26 December 2018

As per the provision of the Income Tax Act, 1961, the amount of compensation due or received by an employee from his employer in connection with an employment shall be taxable as salary in the hands of the employee. Accordingly, the bonus receivable by you shall be taxable in your hands as salary income

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SkDash (CS (Member) CWA (Final)) (909 Points)
Replied 26 December 2018

Agree with Aman. but what about terminal bonus which a person gets on termination of his employment. I feel that is also to be included in salary as payment is on account of employment relationship.

Giridhar S Karandikar (Team Lead) (7548 Points)
Replied 26 December 2018

any sum received by an employee from his employer in connection with the employment is to be treated as income from salary. hence terminal bonus recd is to be taxed as salary as well