Should We Include Bonuses for Contract Workers in Form D? Seeking Advice and Insights

Respected Fraternity,

Looking for suggestions and further learning, we distributed bonuses to contract workers through the contractors by paying them in a monthly billing cycle. Should we add the distributed bonus amounts to contract workers in Form "D" or not?

It is true that the contractor was paid a bonus element through a monthly invoice. However, that is not your bonus payment but rather the cost of engaging some contract workers or the price fixed by the contractor for providing the service. This does not need to be shown in Form D, the annual return to be submitted to the Labour department. You can show your direct payment of bonuses, which should only include payments to your directly employed workers.