Is Unpaid bonus transferred to LWF allowed as deduction

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Mandapaka YesuTeja

Mandapaka YesuTeja (Querist)
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25 September 2019 Is Unpaid bonus transferred to Labour Welfare fund allowed as deduction under income tax act??

RAJA P M

RAJA P M (Expert)
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25 September 2019 No if it's not paid / Payable...

Mandapaka YesuTeja

Mandapaka YesuTeja (Querist)
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25 September 2019 The amount has been paid to Labour Welfare fund since it is unclaimed. Now, Can i take deduction

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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04 June 2020 You may have to show it as Income....

There is no such provision in the Payment of Bonus Act. If the person demanding the bonus had worked in the establishment during the bonus period is not traceable then you can keep it for one or two years in unclaimed bonus to employees account and then later on write back to revenue. You need not send the amount by post or need not go in search of a left employee as in the case of payment of gratuity where it is mandatory for the employer to pay it within one month. Under the Payment of Bonus Act any claim for bonus should be made within one year of its due date for payment. Therefore, if there is no claim for bonus, we can write it back.

https://indiankanoon.org/doc/1902058

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