Payment of Bonus Act, 1965

  • Assessing the applicability of the enactment
  • Preparation of Form no. A and B, which is based on Income Tax and Balance Sheet
  • Advising on payment of bonus and its disbursements - Form no. C
  • Preparation of yearly return in form no. D
  • Advising on disposal of unclaimed bonus

Enactments


Brief detail of the enactment
  • It’s a profit sharing bonus. It gives the right to employees from the profit of the employer. Minimum and maximum bonus limits are prescribed. Certain concessions are given to the new employers and loss making employers
Applicability
  • To every factory
  • To other establishments provided employing 10 or more persons
  • Once applicable remains applicable
  • Employee is entitled for bonus provided worked for minimum 30 days and rate of salary (Basic + DA) is below Rs. 10,000/- pm in a financial year
Requirements
  • Maintenance of A & B registers based on balance sheet and income tax rules
  • Maintenance of C register i.e. disbursement of bonus to employees
  • Annual return in Form no. D
Consequences
  • Provisions of payment of bonus, if not paid according this enactment punishment of imprisonment or fine are in the enactment

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