Annual Bonus Based on Production: Do We Need to Submit Form A and Form B?

Dear all,

If we paid an annual bonus based on production rather than on profit and loss, is it necessary to submit Form A and Form B?

Thank you,
Anil

Dear Anil,

You have to maintain Form A, B, and C. The question of submitting Form A and B does not arise until the same is called for by the Statutory Authority.

Thank you.

Even if you pay a production bonus, you have to pay a bonus as provided in the act. No one can pay some amount (production bonus in your case) as a bonus amount. Productivity is the base for a production bonus, and it is not statutory. If your salary is linked to productivity, then yes.