Hi Our company is planning to pay a month’s salary for this Diwali instead of some gifts to the employees, but worried on the tax factor. Can somebody suggest on the same?
From India, Bangalore
From India, Bangalore
Hi, Bonus is very much texable and that to with flat rate of 30% as per Govt of India, tax department. Punit Sharma SAP-HR Malaysia 0060169475281
From India, Bangalore
From India, Bangalore
Yes, a bonus is taxable, but as normal income only. There is no flat rate applicable. The tax rate depends on the employee's taxable income before the addition of the bonus amount, so it can be 0% to 30% as applicable.
Thanks,
Nikesh
From India, New Delhi
4Thanks,
Nikesh
From India, New Delhi
Hi, Certainly bonus is taxable income in the hands of employee, However if you pay any gifts up to the worth of INR 5000/- Per annum is exempted to tax. Thanks Sunil
From India, Hyderabad
From India, Hyderabad
gift upto rs. 5000/- is not taxable ,bonus is taxable and gift above five thousand is taxable
From India, Delhi
From India, Delhi
Yes,bonus is very much taxable ,otherwise people would be paying themselves huge bonuses to avoid paying tax. james
From Kenya
From Kenya
Hello, The Bonus is taxable, it is part of the salary hence taxable under Salary head. the tax rate depend on your gross annual income. Thanks-Jagmohan Rawat
From India, New Delhi
From India, New Delhi
Is bonus taxable on what basis tax is applicable? Could anyone explain in detail about this? Whether it will be merged on the annual income or separately tax impact will come?
From India, Madras
From India, Madras
what is the procedure for leave encasement in private ltd. company. is it good to take during my resignation or during the job tenure
From India, Lucknow
From India, Lucknow
Hi,
We also received the bonus in the same fashion last year. The tax treatment of the bonus involves adding it to the employee's annual income, and then the final figure is used to calculate the applicable tax. The tax rate is determined based on the final figure according to the tax slabs issued by the IT department.
Hope that explains... :)
From India, Chandigarh
We also received the bonus in the same fashion last year. The tax treatment of the bonus involves adding it to the employee's annual income, and then the final figure is used to calculate the applicable tax. The tax rate is determined based on the final figure according to the tax slabs issued by the IT department.
Hope that explains... :)
From India, Chandigarh
Normally, companies provide leave encashment at the end of the calendar/financial year according to the company's leave cycle. Many companies also allow employees to accumulate leaves (up to a maximum limit) and have them encashed at the end of their tenure. Therefore, whether this is advantageous or disadvantageous depends on your company's policy. Personally, I believe that taking leave encashment at the year's end is beneficial as it encourages individuals to save their leaves every year.
From India, Chandigarh
From India, Chandigarh
As per the Income Tax Act, any income earned by an employee from their employer is taxable (subject to exemptions) in the hands of the employee. Since a bonus will be considered income for the employee, it will be taxable in their hands.
From India, Mumbai
From India, Mumbai
Hi!
Bonus is taxable only if paid in cash, but if the same is paid by way of a gift voucher, which is considered an equivalent currency, then it is 100% tax-free up to Rs. 5000/- under Rule 3(7)(iii) in the Valuation of Perquisites. A very well-known gift voucher is the Ticket Compliments Gift Voucher by Edenred, usable at more than 9000+ outlets pan India and in many categories. The user can buy apparels, edibles, shoes, gold, etc., with the help of GV.
If you need some contacts for them, then let me know; I can help you with the same.
From India, Mumbai
Bonus is taxable only if paid in cash, but if the same is paid by way of a gift voucher, which is considered an equivalent currency, then it is 100% tax-free up to Rs. 5000/- under Rule 3(7)(iii) in the Valuation of Perquisites. A very well-known gift voucher is the Ticket Compliments Gift Voucher by Edenred, usable at more than 9000+ outlets pan India and in many categories. The user can buy apparels, edibles, shoes, gold, etc., with the help of GV.
If you need some contacts for them, then let me know; I can help you with the same.
From India, Mumbai
Hi Sir i want to confirm bonus is necssary for employees,if company will not provide bonus, employees can take legal action? Regards, Bharpoor
From India, Shimla
From India, Shimla
Sure, bonuses are taxable. They are part of the employees' income and, therefore, fall under taxation. However, the rate depends on the present applicable tax rate that the individual employee pays at the moment. Cheers.
From Nigeria, Lagos
From Nigeria, Lagos
Bonus is just another form of wages. It adds to the income from salary and pension, and it is taxable as such in India.
In Malaysia, it might be taxed at a flat rate of 30% (what is the fun if 1/3 is taken away) before it is disbursed?!!
From India, Chandigarh
In Malaysia, it might be taxed at a flat rate of 30% (what is the fun if 1/3 is taken away) before it is disbursed?!!
From India, Chandigarh
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PF Contribution on Leave Encashment - Clarification by EPFO.pdf
SC -PF judgment on No PF on Leave encashment.doc
EPFO Circular Leave Encashment.jpg