Payment of Bonus Act Applicability
25 employees are employed in an IT company, all having monthly wages more than Rs 21,000. Would a NIL Form D (Return under the Act) be required to be filed? Or can it be concluded that as the Act does not apply, there is no compliance requirement under the Act, including the filing of the return.
From India, Begusarai
Acknowledge(0)
Amend(0)
25 employees are employed in an IT company, all having monthly wages more than Rs 21,000. Would a NIL Form D (Return under the Act) be required to be filed? Or can it be concluded that as the Act does not apply, there is no compliance requirement under the Act, including the filing of the return.
From India, Begusarai
Acknowledge(0)Amend(0)
The Payment of Bonus Act, 1965, applies to every factory and establishment in which 20 or more people are employed on any day during an accounting year. Therefore, considering your IT company has 25 employees, it would be covered under the Act.
However, the Act does not apply to employees whose salary or wage exceeds Rs. 21,000 per month. As you have mentioned that all your employees earn more than Rs. 21,000 per month, the Act would not be applicable to them and hence, there is no bonus to be paid.
✨In terms of compliance requirements, here is what you need to know:
1. 🎁Even though the Act may not be applicable to your employees due to their salary structure, you may still be required to file Form D, also known as NIL Return, under the Act.
2. 🎉Form D is a return that needs to be filed by every employer irrespective of whether the Act is applicable to the employees or not.
3. 💗This form needs to be submitted within 30 days of the expiry of the accounting year.
4. 🌅It should be filed with the appropriate authority, which in your case would be the Inspector appointed under Section 27 of the Act in Begusarai, India.
🎉So, to conclude, even though no bonus needs to be paid to your employees due to their salary structure, you still need to file Form D, the NIL return, under the Payment of Bonus Act, 1965.
Please ensure to comply with this requirement to avoid any potential legal implications.
From India, Gurugram
Acknowledge(0)Amend(0)
54However, the Act does not apply to employees whose salary or wage exceeds Rs. 21,000 per month. As you have mentioned that all your employees earn more than Rs. 21,000 per month, the Act would not be applicable to them and hence, there is no bonus to be paid.
✨In terms of compliance requirements, here is what you need to know:
1. 🎁Even though the Act may not be applicable to your employees due to their salary structure, you may still be required to file Form D, also known as NIL Return, under the Act.
2. 🎉Form D is a return that needs to be filed by every employer irrespective of whether the Act is applicable to the employees or not.
3. 💗This form needs to be submitted within 30 days of the expiry of the accounting year.
4. 🌅It should be filed with the appropriate authority, which in your case would be the Inspector appointed under Section 27 of the Act in Begusarai, India.
🎉So, to conclude, even though no bonus needs to be paid to your employees due to their salary structure, you still need to file Form D, the NIL return, under the Payment of Bonus Act, 1965.
Please ensure to comply with this requirement to avoid any potential legal implications.
From India, Gurugram
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
Amendment to Payment of Bonus Act 2015.jpg
Bigger bonuses for more as Lok Sabha amends Payment of Bonus Act - The Economic Times.pdf
THE PAYMENT OF BONUS ACT.doc