my client has paid the bonus for thy year 2011-12 on november 2012. is there any time limit in which bonus payment is to be made? or it can be paid whenever management wants????
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Query on bonus
Replies (5)
Nayan,
There is the time limit for the payment of Bonus under Payment of Bonus Act
Time-limit for payment of bonus.-
1*[All amounts] payable to an employee by way of bonus under this Act shall be paid in cash by
his employer--
(a) where there is a dispute regarding payment of bonus
pending before any authority under section 22, within a
month from the date on which the award becomes
enforceable or the settlement comes into operation, in
respect of such dispute;
(b) in any other case, within a period of eight months from
the close of the accounting year:
Provided that the appropriate Government or such authority as the
appropriate Government may specify in this behalf may, upon an
application made to it by the employer and for sufficient reasons, by
order, extend the said period of eight months to such further period
or periods as it thinks fit; so, however, that the total period so
extended shall not in any case exceed two years.
may this will help you.
Thanks
thank you. it means a lot for me.
As per the PBA 1956 bonus is requried to be paid withing 8 months from teh end of the accounting year. as the bonus is being paid in nov12 so tehre's no default on part of teh employer.
However as per section 43B of teh I-T Act, the bonus paid would get disallowed as it is paid after the due date of furnishing teh retunr i.e 31st Jul or 30th Sept as teh case maybe. This can be however claimed in teh subsequent A.Y.
being cash paid to mr ...... towards reimbursement of petrol bills of JULY , entry passed in november, ie after 3 month. is it correct?
Nayan,
Yes it is correct, because it relates to the same financial year.
Thanks
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