Bonus is taxable on a receipt basis and is included in the gross salary in the year in which the bonus is received. Any fees or commission received by the employee or receivable by the employee are fully taxable and have to be included in gross salary. Commission may be a fixed amount per annum or may be a percentage of turnover or net profit. However, the same is taxable under the head "Salaries" when it is received or receivable by the employee.
Recently, our management has given bonuses to the employees. It was calculated based on the gross salary, and the bonus amount was disbursed in cash. I have a doubt whether the bonus is taxable. If so, please help me out with the calculations.
Thank you.
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