Incentive to employee

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Employee incentives given in cash or kind should generally be accounted under the Salary head. Only common staff welfare expenses not linked to specific employees may be shown under Employee Welfare Expenses.

Suhasini Lad

Suhasini Lad (Querist)
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29 March 2022 Dear All,

Incentives given to employee in cash or in kind should be included in which Account head, should it be included in salary of employee or should it be included in separate head i.e., Incentives to employees.

Thanking you

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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29 March 2022 Include it in salary head.

CA Puja Sharma

CA Puja Sharma (Expert)
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29 March 2022 Ye sindividual incentives given to employees to be grouped under Salary .
If any other expenses have been done which cannot be individually linked to an employee then that can be grouped under employee welfare expenses.

Suhasini Lad

Suhasini Lad (Querist)
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29 March 2022 Thank You, Sir for your kind reply.

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