When Should We Start Counting the 8 Months for Bonus Payments? Seeking Advice

Dear Seniors, The closing of accounts is on 31 December of each year, and the same are placed before the AGM in January. Now the bonus is to be paid within 8 months from the closure of the accounting year. For the purpose of IT, the books are closed on 31st March each year.

Kindly advise as to which month onward we should start counting 8 months and before the end of which month we should pay the Bonus.

Regards,
Laxman

You count 8 months from the date of closing books of accounts, i.e., 31st March, every year. If your management is ready to pay a bonus before November, then there is no problem for employees; they can celebrate the festival. Kindly revert if you agree.

Regards,
Dhananjay

Bonus Payment Timeline

The bonus must be paid within 8 months from the closing of the accounting year, which in your case is 31st March. Therefore, the bonus must be paid within 8 months thereafter, i.e., between April to November.

Regards,
B. Saikumar
HR & Labour Law Advisor
Mumbai

Since the accounting year closes in March, can we pay a bonus for the period April 2011 to March 2012? Please correct me.

Bonus Payment Timing

The bonus should be paid within 8 months of the closing of accounts. However, remember it should be paid before the submission of the IT Return, as the date for the IT return is 30th September. Therefore, always make the payment before 30th September, or it is better to make the payment of the bonus at the end of August for safety.