How Do I Calculate and File the Annual Return in Form D Under the Bonus Act?

I want to know how to calculate and file the return in Form 'D' under the Bonus Act. Please advise in detail.

Please refer to Form D and fill in the total amount of bonus paid to your employees in column 1. If there is no settlement and bonus paid according to the provisions of the Bonus Act, then write "NA" in column 2. Put the percentage, i.e., 8.33% or 20%, in column 3. In column 4, enter the amount of bonus actually paid. In column 5, indicate the date of payment on which the bonus was paid/deposited to the bank. In column 6, please provide remarks according to the eligibility in your case, such as the number of eligible employees to whom you have made payment of bonus/ex gratia. In case of non-payment, state the suitable reason, e.g., not eligible for bonus as per the act, etc.

Regards,

Dear Mr. Subraya Ji,

Please see the attachment for Form D - Annual Return.

Regards,
PBS Kumar

1FORM D

Annual Return – Bonus paid to employees for the accounting year ending on the ……….

1. Name of the establishment and its complete postal address:
2. Name of industry:
3. Name of the employer:
4. Total number of employees:
5. Number of employees benefited by bonus payments:

Total amount payable Settlement, if any, reached Percentage of bonus
as bonus under section under section 18(1) of 12(3) declared to be paid
10 or 11 of the Payment of the Industrial Disputes
of Bonus Act, 1965 Act, 1947 with date
as the case may be
1 2 3













Total amount of bonus Date on which Whether bonus Remarks
actually paid payment made has been paid to
all the employees,
if not, reasons
for non-payment

4 5 6 7











1 Ins. by S.O. 251 dated 7th January,1984,(w.e.f. 21.1.1984)

Dear Vijay,

Return under the Bonus Act has to be submitted within 30 days after the expiry of the time limit specified for the payment of bonus, which is 8 months from the close of the financial year.

Hello Rajeev Verma Ji,

Thank you for your advice. Our company has paid a bonus in September 2008, so can we submit the return up to October 31, 2008? Also, please tell me the procedure for submitting the return.

Thank you,
Vijay

Dear Vijay,

The actual deadline for submitting the Return is in December. However, it can also be submitted well before the deadline without any issue.

The form is a one-page format, which is attached in the previous post. Please fill it out and submit it to the Labour Department. The Labour Department is the competent authority under the Bonus Act. Remember to keep an acknowledged copy for your records.

Thank you.

Hi, I want to know the difference between ESTABLISHMENT, FACTORY, INDUSTRY. Please suggest the basic differences.

Establishment, factory, and industry are related terms but have distinct meanings. An establishment typically refers to a place of business or an organization. It can encompass various types of businesses, including factories, offices, shops, etc.

A factory specifically denotes a building or group of buildings where goods are manufactured or processed. Factories are typically involved in production activities, such as assembling products or manufacturing goods on a larger scale.

On the other hand, industry refers to a broader concept that encompasses all the businesses and activities involved in the production of goods or services within a particular sector. It includes not only factories but also other establishments, suppliers, distributors, and related organizations within a specific industry.

In summary, an establishment is a broader term that can refer to any place of business, while a factory is a specific type of establishment dedicated to manufacturing activities. Industry, on the other hand, encompasses all businesses and activities within a particular sector.

Dear All,

Presently, 1050 employees are working in our firm. We are providing the monthly bonus along with the salary. However, I am facing an issue in calculating and preparing the bonus return. Each month, employees are transferring from one unit to another, making it challenging to determine in which payment sheet they should be included. This process is time-consuming and complex. Kindly provide instructions on how to simplify the preparation of the Annual Bonus return for all 1050 employees.

With Regards,
Yugal

Dear All,

In our CTC structure for Senior Management Cadre, we have a reimbursement component called "Driver's bonus" which is paid in cash. The driver is not provided by the company; the employee himself hires the driver. Can the company pay the reimbursement in cash? Can the company ask for the bonus to be returned from the employee?

Looking forward to your advice.

Regards,
Trupti

Dear Member,

An annual return in Form 'D' is required to be sent to the Inspector of the area under the Payment of Bonus Act, 1965 and the rules made thereunder.

With Regards,
R.N.Khola

The annual return is to be sent to the Inspector of the area in Form 'D' by every employer who is covered under The Payment of Bonus Act, 1965, and is liable to pay a bonus as per the time limit prescribed under section 19 of this Act.

Regards,
R.N.Khola

We are not required to submit Form A & B to any authority under the Payment of Bonus Act, 1965, and the Rules made thereunder. We are to maintain Register A & B as provided by the Payment of Bonus Rules.

Regards,
R.N.Khola

Hi, actually, I would like to know if the bonus is payable on the basic salary or the gross salary as per the act.

Regards,

If an employee has left the service, it should be compulsory to pay a bonus as per the act. The amount to be paid, based on the Basic or Gross salary, is determined by the act. Please let me know if you need further clarification or assistance.

Regards

Bonus is payable as per salary or wages as defined under the Payment of Bonus Act, 1965, or on a consolidated salary. For details, please refer to section 2(21) of this Act.

Regards,
R.N.Khola

Thank you for the information. I have another question. We have already paid a bonus, so we calculate his whole year gross salary divided by that many months. For example, the yearly gross salary is $200,000 / 12 = Bonus.

Maintaining the Bonus Register

My question is, how do we maintain the Bonus Register and how do we fill out the Bonus Return? This means how to show the percentage in the Register and Return.

Hi all,

Please clarify my doubt, i.e., how to calculate bonus and what is the bonus formula. Please explain.

Phani

Dear All,

Presently, 500 employees are working in our firm. We provide monthly bonuses along with the salary. I am currently facing a challenge in calculating and preparing the bonus returns. It is difficult to determine in which payment sheet each employee should be included, and this process is time-consuming. Kindly provide me with instructions on how to simplify the preparation of the Annual Bonus return for all 500 employees.

With Regards,

Dear all,

I want to know if a bonus is mandatory to pay if an organization is suffering losses for the last three years. Also, if one has not submitted Form D on time, can Form D be submitted later (in March and April)?

Thank you.

Dear all,

Applicability of the Payment of Bonus Act, 1965

The Payment of Bonus Act, 1965, and the Bonus Rules, 1975 are applicable to all establishments where the manpower on any day during the financial year is 20 or more (please refer to sec. 1(2)(3)(a),(b)). Once it becomes applicable, the establishments are obligated to adhere to the provisions of the Act & Rules and shall submit the Forms & Returns in Format A, B, C & D attached to the Bonus Rules, 1975, which shall be maintained in the form of a Register(s) as per "Rule 4. Maintenance of Registers."

Submission of Unified Annual Return in Form D

The Unified Annual Return in Form D (amended from 2019) shall be uploaded on the web portal of the Central Government in the Ministry of Labour and Employment, furnishing information as to the particulars specified in respect of the preceding financial year "on or before the 1st day of February each year" (Ref. Rule 5 of the PoB Rules, 1975). Provided that during inspection, the inspector may require the production of accounts, books, registers, and other documents maintained in electronic form or otherwise. This Rule has been amended/introduced by a notification G.S.R. 58(E), dated 29.1.2019 (w.e.f. 29.1.2019). Please see the copy attached: https://www.staffnews.in/2019/05/pay...ules-2019.html

Amended Form D - Unified Annual Return

Please take note of the amended Form D - Unified Annual Return, which is to be "uploaded on the Ministry of Labour portal." This Form D is published in PDF form. An Excel format is not readily available. (I'll try to upload asap, and you can also convert from PDF format to Excel format for convenience of filling the form & to upload).

For uploading to the portals of the Ministry of Labour, use the login link: https://shramsuvidha.gov.in/resetLog...JAZ21haWwuY29t

Dear friends,

The amended formats require filling with many details and computations, as seen in Form A to C and Form D, to be uploaded on the portals. It will be difficult to collect and group the required data for the whole year and fill in the appropriate columns. This will call for coordinated efforts from Finance/Accounts and HR. I would advise the concerned parties to commission a suitable software linked to your payroll, especially where a larger number of employees' data needs to be collected and filled in the formats. Otherwise, manually, it is not possible to collect and input them in the right places.

Computation of Bonus Payable

Regarding the computation of the bonus payable, the formats A-C are to be filled. I suggest the concerned parties prepare Excel sheets and fill in the data. If these are prepared as soon as the audited annual financial accounts are available, the payable amounts of the bonus can be determined on a per-person basis. I am aware that in small establishments, bonus amounts are fixed and disbursed on an individual basis, with top-level management empowering different amounts to different employees based on their contributions, dedication, potential, etc. Conversely, in larger establishments, amounts are fixed at a certain percentage, perhaps after an agreement with unions, commonly applicable either as a whole or in groups. This typically ranges between the statutory 8.33% and 20%, with higher percentages also possible. This stipulation applies irrespective of whether the establishment earns a profit or incurs a loss. It is important to note that establishments incurring losses must still pay statutory bonuses at a minimum of 8.33%.

For uploading and further information, please use the following link: https://shramsuvidha.gov.in/eRegister#

To calculate and file the annual return in Form 'D' under the Bonus Act, follow these steps:

1. Data Collection: Gather all necessary details and computations required for Form A to C and Form D. This requires coordination between the Finance/Accounts and HR departments.

2. Software Recommendation: Consider using suitable software linked to your payroll system for easier data collection and input.

3. Computation of Bonus Payable:
- Fill out formats A-C with the necessary data. Prepare Excel sheets for computation.
- Bonus amounts can be fixed and disbursed based on individual performance or as a percentage for larger establishments.
- Statutory bonus percentages typically range between 8.33% and 20%.
- Establishments, even those incurring losses, must pay a minimum statutory bonus of 8.33%.

4. Disbursement: Determine bonus amounts on a per-person basis using audited annual financial accounts.

5. Further Information: For uploading and additional details, refer to the following link: https://shramsuvidha.gov.in/eRegister#