Provisional entry bonus.
This query is : Resolved
10 August 2021
Dear Expert,
our company has recently changed it's salary structure for the newly joined employees and, in the recent change company included the Bonus amount in monthly CTC at a predefined rate on basic salary and, as per the new structure the company will pay the bonus amount at the end of the year irrespective of whether the company making the profit or not.
and my doubt is, whether we should record the bonus expense in every month or, annually at end of the reporting period, in the payment financial year ?
Note: the company is a SME Company.
our company has recently changed it's salary structure for the newly joined employees and, in the recent change company included the Bonus amount in monthly CTC at a predefined rate on basic salary and, as per the new structure the company will pay the bonus amount at the end of the year irrespective of whether the company making the profit or not.
and my doubt is, whether we should record the bonus expense in every month or, annually at end of the reporting period, in the payment financial year ?
Note: the company is a SME Company.
10 August 2021
Record the bonus expense annually at end of the financial year.
11 August 2021
According to Section 43B of Income Tax Act, expenditure is allowed to be deducted only in the year when such expenditure is paid, i.e. Bonus to employees. An exception is also provided if the expenditure is paid before filing the annual return u/s 139(1).
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- STCG....................................................
- Section 54F - Exemption on LTCG in 2026 for HP purchased in 2023
- TAN for Partnership
- Sales return eway bill
- AMOUNT RECEIVED UNDER COMPULOSRY ACQUISITION OF AGRICULTURAL LAND
- Is E Way Bill Valid If Transport ID Not Mentioned in PART A But Vehicle details mentioned in PART B
- GST Registration Horse racing
- Small dealers gst returns filing
- Section 43B(h) – MSME Invoice Paid Before Year End but After 45 Days
- CA IPCC Registeration in 2012, Is my registration Active or Expired
- Free lancer income
- Long Term Service award taxability in hands of company
- Standard Deduction claim for EPFO Pension and ICICI Prudential Life Annuity
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- Nomination of Bank for refund in itr 2
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
