As per the Payment of Bonus Act first five years is exempted for payment of Bonus unless the company makes profits. when the company is incorporated on 1st Jan 2015 and completes 5 years in 1st Jan 2020. whether the bonus need to be paid for the financial year 2019-20 payable during Sept/Oct 2020 or for the financial year 2020-21 payable during Sept/Oct 2021 please.
if anyone can proved information towards the applicability please.
Thanks for sharing this @shridhar.joshi
Wish to see you keep sharing information and help others in the community. Once again welcome to the community.
Hi Sridhar,
As per my understanding you will have to pay Bonus for the FY 2020-21 as in FY 2019-20 your company’s 5th year was running.
Lets wait for others opinion.
Hi Community,
As per Section 16-1A: In the first five accounting years following the accounting year in which the employer sells the goods produced or manufactured by him or renders services, as the case may be, from such establishment, bonus shall be payable only in respect of the accounting year in which the employer derives profit from such establishment and such bonus shall be calculated in accordance with the provisions of this Act in relation to that year, but without applying the provisions of section 15.
Thus you are liable for Bonus payment for FY20-21 as per provision of Section 16-1B