Confused About Bonus Reporting: Do High Earners Need to Be Included in Forms C & D?

Clarification on Bonus Submission Requirements

Please clear up a little confusion I have regarding the bonus. My company declared a 20% bonus for the year 2012-13 for all employees and provided the benefit to everyone, regardless of whether their basic wage exceeded Rs. 10,000. (According to the bonus rules, it is not mandatory to provide a bonus to those whose basic wage is over Rs. 10,000.) The company fixed the wage at Rs. 3500.

My query pertains to the preparation of Form 'C' and the submission of Form 'D' at the labor office. Do we need to include details of employees and their bonus amounts if their wage is more than Rs. 10,000, or should we only include details of those who are legally entitled to the bonus (those with a basic wage less than Rs. 10,000)?

I need clarification as I have to submit the bonus return.

Thanks and regards,
Prem

Ex-gratia payment is at the discretion of management and does not need to be mentioned in Form C and Form D since they are not eligible for a bonus as per the said Act.

Regards,
Kumar

Dear Mr. Kumar,

Now, as per your suggestion, if it is not required to mention in Form D, then please refer to Form D, in which point no. 4 asks for the total number of employees and point number 5 asks, "Number of employees benefitted by bonus payment." Will it be the same, only for Form C defined employees, or should total employees be mentioned in point 4 and in point 5, only employees from Form C be mentioned?

Regards,
Prem

Dear Prem, In point no. 4, please mention the total number of employees in your esteemed organization. And in point no. 5, specify the numbers as indicated in Form C.

Regards,
Kumar

If we show the total number of employees in point 4, including ex-gratia personnel, and then in point 5, only mention numbers as in Form C, the two numbers will not match. In that scenario, we will have to provide details on whether bonuses have been paid to all employees. If not, provide reasons for non-payment (Column-6).

So, what will be the reason for this according to the above context?

Regards,
Prem

Respected all,

In the Bonus Act annual return, the total amount payable as a bonus under Sec. 10 or 11 of the Payment of Bonus Act, 1965, as the case may be, should be filled. Should it be Bonus + Ex gratia or Only Bonus?