Dear All,
1 urgent clarification i was seeking, We have paid Rs. 25 lakhs to marketing head who is joining bonus 10 lakhs after 15 days as bonus & loan of 15 lakh. can this be done or some penali=ties will come as employee is yet to be joined.
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Loan & Joining bonus to new employees Chief Marketing Officer
Replies (1)
Yes, paying ₹25 Lakhs (₹10 Lakhs bonus + ₹15 Lakhs loan) prior to joining is legally permitted without Companies Act penalties, provided the CMO is not a Director.
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Bonus (₹10 L): Taxable; deduct TDS under Section 192 (or 194J if pre-contract).
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Loan (₹15 L): Not taxable as income, but perquisite tax applies on interest savings (Rule 3(1)) if interest-free or below SBI rates.
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Safeguard: Execute a signed Offer Letter with a clawback clause and a formal Loan Agreement prior to disbursing funds.
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