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Bonus payment in cash for employees

Manohar Sankaran (9 Points)

27 March 2022

I have 10 employees. Can I pay Bonus to all, not exceeding Rs. 10,000 each, on a single day?

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13 Replies

Eswar Reddy S (CFO- at NHTF) (58213 Points)
Replied 27 March 2022

Yes .It can be done

Rahul (MT) (102 Points)
Replied 27 March 2022

Is there any ceiling limit for giving bonus per employee?

Eswar Reddy S (CFO- at NHTF) (58213 Points)
Replied 27 March 2022

Is it statutory bonus or performance bonus ?

Manohar Sankaran (9 Points)
Replied 27 March 2022

It is performance bonus, varying between Rs. 6500 to 8500 per employee.

Manohar Sankaran (9 Points)
Replied 27 March 2022

The ceiling in question is of cash payments of Bonus exceeding Rs. 10000 limit, in total for 10 persons, on a single day

Eswar Reddy S (CFO- at NHTF) (58213 Points)
Replied 27 March 2022

The limit is for per employee, per day

Manohar Sankaran (9 Points)
Replied 27 March 2022

Thanks for the clarifications, Mr. Eswar.

sabyasachi mukherjee (26187 Points)
Replied 28 March 2022

Payment of bonus act section is pertinent.

Eswar Reddy S (CFO- at NHTF) (58213 Points)
Replied 28 March 2022

But the cash payment per day comes under Income Tax Act

sabyasachi mukherjee (26187 Points)
Replied 28 March 2022

Let me give you the details of payment of bonus Act. Applicability of bonus payable to the employees. When an employer is eligible for payment of bonus?

Eswar Reddy S (CFO- at NHTF) (58213 Points)
Replied 28 March 2022

The question is about cash payment per day ..
There is 10k per day per person limit.

Query is based on this

JJJ (Need help) (673 Points)
Replied 28 March 2022

Originally posted by : sabyasachi mukherjee
	Let me give you the details of payment of bonus Act. Applicability of bonus payable to the employees. When an employer is eligible for payment of bonus?