Dear DS, It is not basic. I wrongly mentioned "Basic up to Rs.10,000/-" It is gross not basic. Regards, Manas.
From India, Visakhapatnam
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3From India, Visakhapatnam
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Dear Meenakshi Ji,
You are 100% correct. From the 6th and 7th year, set on and set off are applicable. I wanted to say that a bonus is a liability. If a company is unable to generate a profit, although it has to pay.
According to 16 (1 B I), "for the sixth accounting year-- set on or set off, as the case may be, shall be made in the manner illustrated in the Fourth Schedule taking into account the excess or deficiency, if any, as the case may be, of the allocable surplus set on or set off in respect of the fifth and sixth accounting years" -- means whatever excess or deficiency...we have to pay a minimum bonus.
Am I correct? Please advise.
Regards,
Manas.
From India, Visakhapatnam
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You are 100% correct. From the 6th and 7th year, set on and set off are applicable. I wanted to say that a bonus is a liability. If a company is unable to generate a profit, although it has to pay.
According to 16 (1 B I), "for the sixth accounting year-- set on or set off, as the case may be, shall be made in the manner illustrated in the Fourth Schedule taking into account the excess or deficiency, if any, as the case may be, of the allocable surplus set on or set off in respect of the fifth and sixth accounting years" -- means whatever excess or deficiency...we have to pay a minimum bonus.
Am I correct? Please advise.
Regards,
Manas.
From India, Visakhapatnam
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Bonus is a part of statutory compliance and has no relation to performance appraisal results. Bonuses must be paid before the end of the first 6 months of the next financial year for those employees who are receiving Rs.10K or less but up to Rs.3500. The bonus amount is calculated as Earned basic x percentage, ranging from Rs.292 to Rs.700, at a rate of minimum 8.33% and maximum up to 20%, subject to the Profit and Loss situation in your 6th Balance Sheet. This exemption is applicable for 5 years only, and employees must have worked for a minimum of 30 days or have an amount due to them of more than Rs.100 during the financial year. Incentives paid by the company, other than the statutory amount, may be linked to your performance appraisal systems or results.
Jagdish Yadav
Mussoorie Dehradun
9358147022
From India, Delhi
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Jagdish Yadav
Mussoorie Dehradun
9358147022
From India, Delhi
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