Is Bonus Taxable ?
Krutesh Patel
(ACA)
(727 Points)
Replied 10 July 2009
Hello friend,
As per defination of Salary in Income Tax Act,1961 Salary also includes sum payable by way of bonus to employees. So bonus will be taxable in hands of employee.
PiyushAgrawal
(Chartered acooutant in practice)
(575 Points)
Replied 10 July 2009
| Originally posted by :Rajesh | ||
| " | When ever you get bonus it will be included in that years income | " |
Ya it is taxable on cash basis.
Max Payne
(employed)
(2569 Points)
Replied 10 July 2009
as per section 17(1), salary includes bonus.
salary is taxable when it is received or when it becomes due, whichever is earlier.
only under the heads
income from other source and income from business or profession
the assessee has the option to offer his income to tax on cash basis.
-Bonus is taxable when it accrues to assessee, which invariably is the same year in which it is received
| Originally posted by :Gopalakrishnan | ||
| " | as per section 17(1), salary includes bonus. salary is taxable when it is received or when it becomes due, whichever is earlier. only under the heads income from other source and income from business or profession the assessee has the option to offer his income to tax on cash basis. -Bonus is taxable when it accrues to assessee, which invariably is the same year in which it is received |
" |
I too agree with Mr. Gopalakrishnan
CA Ganesh Bhat
(Asst. Manager-Finance)
(72 Points)
Replied 10 September 2011
Is outstanding bonus (bonus arrears/due) taxable??
Ramanuj
(Accountant.)
(829 Points)
Replied 10 September 2011
ya Bonus is taxable in hand of employee becouse is part of salary.
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