Hi,
Our company paid different amt. cheques to employees on the basis of their performance on dewali festival.
so under which account head this expnese needs to be posted in salary and is this expense taxable or not in the hands of employees?
please clarify.
Thanks in advance
There is no specific head for Bonus in the Revised Schedule VI, so you can post the amounts paid to the Employees on Diwali in the General Salaries & Incentives head. Also, any amount paid to the employees for their efforts is taxable.
If this amount is paid as per Bonus act it is acounted as Bonus to Employees if given based on performance you term the same as performance Bonus or exgratia by whatever name you call all of them are taxable in the hands of employees
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