Hi All, I worked for one company as an engineer, and after 11 months of completion, I left that company 3 months ago. They deducted some money as a bonus from my every month's salary, and after a year's completion, they provided that money as a bonus. In my offer, they did not mention any time period for the bonus. My CTC is included in that money, and I have to pay tax on that money also.
I worked 11 months, and during these 11 months, they deducted money from my salary. But I left the company in 11 months. They are not giving that money. The company saying when you complete one year, then only we can process your amount. But I also have to pay tax on that deducted money.
For proof, I have an offer letter, in offer letter, they mentioned the amount as a bonus.
Please advise me on what I have to do. Is there any way to remove this bonus amount from the tax?
From India, Chennai
I worked 11 months, and during these 11 months, they deducted money from my salary. But I left the company in 11 months. They are not giving that money. The company saying when you complete one year, then only we can process your amount. But I also have to pay tax on that deducted money.
For proof, I have an offer letter, in offer letter, they mentioned the amount as a bonus.
Please advise me on what I have to do. Is there any way to remove this bonus amount from the tax?
From India, Chennai
Hi, by rules you are eligible for taking bonus amount. you have claim for your bonus amount. thanks, Vaishali
From India, Nagpur
From India, Nagpur
Let me correct you by saying that your CTC will not attract tax. It is the salary, allowances, incentives and bonus that are EARNED that will attract tax and not the cost to your company. If you have not earned bonus, you need not include the same in salaries and allowances in the tax returns. The employer while generating form 16 also will not mention this amount.
The company can not deny bonus by saying that you have to work for 12 months to earn bonus. That defence is totally incorrect and illegal. But they can refuse to pay bonus if your salary exceeds Rs 21000 per months and by saying that you are outside the scope of Bonus Act . If they refuse on that ground you can demand it by countering that there is breach of contract, and since the amount of Bonus is mentioned in the salary statement (CTC structure), bonus is one of the conditions of service, and non payment of it would be breach of service condition.Then you will get it.
From India, Kannur
4246The company can not deny bonus by saying that you have to work for 12 months to earn bonus. That defence is totally incorrect and illegal. But they can refuse to pay bonus if your salary exceeds Rs 21000 per months and by saying that you are outside the scope of Bonus Act . If they refuse on that ground you can demand it by countering that there is breach of contract, and since the amount of Bonus is mentioned in the salary statement (CTC structure), bonus is one of the conditions of service, and non payment of it would be breach of service condition.Then you will get it.
From India, Kannur
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
Amendment to Payment of Bonus Act 2015.jpg
Bonus act amendment gazette copy.pdf
Bonus-amendment _206.doc