ravi (senior accountant) (507 Points)
08 December 2011My company pays bonus to employees (they are not registered under bonus act) here pl suggest if simply a 1month bonus if paid. is it deductible under IT Act, or 36(1)(ii) applies here.
pls suggest me whether bonus is allowed for deduction only if an employee is registered under bonus act.
satish kumar voleti
(A.C.A., (ICWAI))
(1686 Points)
Replied 08 December 2011
Yes you can cliam provided if the amount is to be paid through a account payee cheque or account payee draft.
even if it is disallowed in section 36(1) (ii) it will allowed as deduction under section 37(1) as bonus to employees is a business expenditure.
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