Re: Is BONUS Taxable? - CiteHR
KRISHAN KUMAR TYAGI
Corporate Hr Head
Nrk.rao
Hr Professional
Mserica
Human Resources Officer

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Dear friends, Can any one please let me know whether the bunus amount is taxable? I’m eagerly waiting for your response. Thanks binzy
Hi, Bonus is taxable income. We have to pay income tax on bonus as per guidelines. Regards, Ramakrishna
What Prashant is saying is not clear and mat lead to confusion to new joinees in HR. PF can not be deducted/paid from/on Bonus.It is not covered under the definition of Pay. KKT
Dear Friends,
Thanks for your input. I wanted to clarify this coz couple of our employees argued with me that in their previous company they were given seperate cheques for their bonus amount; and there were no deductions made.
I was confused. Now I'm sure that its taxable (as its followed in my company)Thanks for your clafication.
binzy

Out of curiosity as I am in Australia and we need to pay superannuation on a bonus (Tax is taken out on the core bonus amount and not superannuation component)
Does this also apply to the countries in which you are located in?

Out of curiosity as I am in Australia and we need to pay superannuation on a bonus (Tax is taken out on the core bonus amount and not superannuation component)
Does this also apply to the countries in which you are located in?

Dear Mserica,
In India, Superannuation is not payable on Bonus, therefore full bonus becomes taxable. But some Companies do deposit up to 15% of basic salary of employees in a superannuation fund of Insurance Companies in the name of the employees. These contributions are not taxable up to Rs. 100.00 thousand in a year.
KKT

Dear KKT,
Bonus is not taxable as such the component of bouns is very samll and is not taxable. As per the law the maximum limit for bouns is 3500 basic salary of the employee. As such a person who is getting a basic salary of rs.3500 and if DA component is not there his actual salary will not come under taxable limit.
Whereas it depends on the companies policies regarding bouns. Yes bonus is taxable as it is a part of CTC salary and in anuual return you have to show it as income. So it is taxable.
SS

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