Page 242 - DMGT306_MERCANTILE_LAWS_II

Unit 12: Payment of Bonus Act, 1965

Notes
Example:

 In this Schedule, the total amount of bonus equal to 8.33 per cent of the annual salary
or wage payable to all the employees is assumed to be 1,04,167.
 Maximum bonus to which all the employees are entitled to be paid (20% of the
annual salary or wage of all the employees) would be 2,50,000.
Year Amount equal Amount payable Set on or set Total set on
to sixty per cent. as bonus off the year or set off
or sixty-seven carried Carried
per cent., as the forward Forward
case may be, of
a available
surplus
allocable as
bonus
of
(year)
1. 1.04.167 1.04.167** Nil Nil
2. 6,35,000 2,50,000* set on set on (2)
2,50,000* 2,50,000*
3. 2,20,000 2,50,000* (inclusive Nil Set on (2)
of 30,000 from 2,20,000
year-2)
4. 3,75,000 2,50,000* Set on Set on (2)
1,25,000 2,20,000 (4)
1,25,000
5. 1,40,000 2,50,000* (inclusive Nil Set on
of 1,10,000 from 1,10,000 (2)
year-2) 1,25,000 (4)
6. 3,10,000 2,50,000* Nil Set on Nil + (2)
1,25,000 (4)
60,000 (6)
7. 1,00,000 2,50,000* (Inclusive Nil Set on
of 1,25,000 from 35,000 (6)
year-4 and 25,000
from year-6)
8. Nil 1,04,167** Set off 69,167 Set off (8)
(due to loss) (inclusive of 35,000 69,167
from year-6)
12. 10,000 1,04,167*** Set off 94,167 Set off
69,167 (8)
94, 1267 (9)
10. 2,15,000 1,04,167** (after Nil Set off
setting off 69, 167 52,501 (9)
from year-8 and
41,666 from year-9)
* Maximum
** Minimum
The balance of 1,10,000 set on from Year-2 lapses.

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