Are My Set-On and Set-Off Calculations Correct? Let's Discuss Your Examples

Are My Examples for Set-On and Set-Off Correct?

The formula for set-on is (Available surplus - Max Bonus) or 20% of Salary, whichever is less. For example, the available surplus of Company "A" in the year 2012-13 is Rs 10,00,000/-. The Allocable Surplus for that year is Rs 600,000/- (for non-banking companies at 60% of available surplus). Let's assume the salary payable by Company A in the year 2012-13 is Rs 12,00,000/-. The Max Bonus by Company A in that year at 20% in the year 2012-2013 is Rs 2,40,000/-. Therefore, the set-on for the year 2013-14 is (Available surplus - Max Bonus) or 20% of Salary, whichever is less, equaling Rs 600,000 - Rs 2,40,000 = Rs 3,60,000/-. Hence, Rs 2,40,000/- is the set-on since Rs 3,60,000/-.

Example of Set-Off

The formula for set-off is (Minimum Bonus - Available surplus). For example, the minimum bonus to be paid by a company is Rs. 100,000/- while the Allocable surplus is Rs 10,000/-.

The calculation of Set On and Set Off in the above posting is correct. However, please note that the calculation for the Set Off provision is incomplete.

Regards, Abbas.P.S

Well explained, but incomplete as said. I request anyone can continue the above complete Set off calculation with the given example. Many thanks in advance. Eagerly waiting...!!!

Set on = (Available surplus - Max Bonus) or (Allocable Surplus - Max Bonus) need clarification??

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The user's input seems to be a technical question related to surplus and bonus calculations. To enhance clarity, the sentence can be revised as follows:

"Could you provide clarification on whether 'set on' refers to (Available Surplus - Max Bonus) or (Allocable Surplus - Max Bonus)?"

Set off = (Min Bonus - Available Surplus) or (Min Bonus - Allocable Surplus) ?? Need an update on this.