Understanding Bonus Forms A and B: Why Do They Need a Chartered Accountant's Certification?

Hi Friends,

Can someone guide me on the purpose of maintaining Bonus forms A and B, and why do they have to be certified by a Chartered Accountant (C.A.)?

Raj

Dear Raj,

By Form A & B and computation of gross profit, one has to arrive at the bonus for disbursement and decide on the percentage. Since it involves all financial statements and balance sheet contents, Chartered Accountants (CAs) are advised.

Thanks,
Ram K Navaratna
HR Resonance

Dear A&B,

A register of bonus is required to compute allocable surplus. Based on that, we calculate the set on/off for the bonus, which decides the percentage of bonus to be distributed.

Thank you,
J.S. Malik

Dear Raj,

These two registers are being maintained by the management to see the allocable surplus and to decide the percentage of bonus to be paid for an accounting year to its eligible employees and to have set on/set off. For more details, please go through the Payment of Bonus Act, 1965.

Regards,

R.N.Khola
(Labour Law & Legal Consultants)
09810405361