Payment of Bonus Act,1965
Act No : 21
Section :
Set on and set off of allocable surplus.
5*[15. Set on and set off of allocable surplus.- (1) Where for any accounting year, the allocable surplus exceeds the amount of maximum bonus payable to the employees in the establishment under section 11, then, the excess shall, subject to a limit of twenty per cent. of the total salary or wage of the employees employed in the establishment in that accounting year, be carried forward for being set on in the succeeding accounting year and so on up to and inclusive of the fourth accounting year to be utilised for the purpose of payment of bonus in the manner illustrated in the Fourth Schedule. --------------------------------------------------------------------- 1. omitted by act 30 of 1985, s.2. 2. Ins. by act 67 of 1985, (w.e.f. 7-11-1985). 3. Subs. by Act 34 of 1995, s. 3, for "one hundred and six hundred rupees" (w.e.f. 1-4-1993). 4. Subs. by s. 8, ibid., for s. 13 (w.e.f. 21-8-1980). 5. Subs. by s. 9, ibid., for s. 15 (w.e.f. 21-8-1980). 435 (2) Where for any accounting year, there is no available surplus or the allocable surplus in respect of that year falls short of the amount of minimum bonus payable to the employees in the establishment under section 10, and there is no amount or sufficient amount carried forward and set on under sub-section (1) which could be utilised for the purpose of payment of the minimum bonus, then, such minimum amount or the deficiency, as the case may be, shall be carried forward for being set off in the succeeding accounting year and so on up to and inclusive of the fourth accounting year in the manner illustrated in the Fourth Schedule. (3) The principle of set on and set off as illustrated in the Fourth Schedule shall apply to all other cases not covered by sub- section (1) or sub-section (2) for the purpose of payment of bonus under this Act. (4) Where in any accounting year any amount has been carried forward and set on or set off under this section, then, in calculating bonus for the succeeding accounting year, the amount of set on or set off carried forward from the earliest accounting year shall first be taken into account.]
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Prakash Yedhula
wrote on 19 April 2009
Liability of paying bonus has to be determined only with reference to sections 10 and 11, i.e., the employer is bound to pay the minimum bonus of 4% of wages or the maximum bonus of 20% of wages in accounting year, as the case may be. [Express Cables Pvt. Ltd. v-C.I.T., (1992) 1 L.L.J 441 (Cal.)].
