1. #1
    Unregistered

    How much tax will be there in Bonus?

    Is the bonus given by the company also taxed? Can you please tell me how much % will be taken in tax? Why they have to tax even the Bonus which we get from the company? So is it like only a few amount we will get in hand? Why company have to give bonus instead they can give appraisal in our salary right? Can you please share your views on this?

  2. #2
    Ashok Array
    Join Date
    Jul 2012
    Posts
    2,293

    Re: How much tax will be there in Bonus?

    Quote Originally Posted by Unregistered View Post
    Is the bonus given by the company also taxed? Can you please tell me how much % will be taken in tax? Why they have to tax even the Bonus which we get from the company? So is it like only a few amount we will get in hand? Why company have to give bonus instead they can give appraisal in our salary right? Can you please share your views on this?
    Dear Aspirant,

    To my mind,bonus amount is not taxable as it is a part of the profit of the company/organisation.The financial transaction of a company is audited every year & if the company is found in profit,then this profit amount is distributed among the employees.The profit amount is determined after the calculation & deduction of the taxes at the company level,so the bonus paid to the employees is not taxable since the tax has already been paid on this amount at the company level.

    The company prefers to pay bonus instead of enhancing the salary to its employees,because if the employer enhances the salary to the employee,the employer will have to pay the amount regularly.On the contrary,bomus paying to the employees is not binding.The employeer can not pay the bonus if the company is not in profit.


    Hope you the above is informative useful to you.


    Thanks & good luck.


    Ashok

  3. #3
    Expert Array
    Join Date
    Nov 2012
    Posts
    39

    Re: How much tax will be there in Bonus?

    Hello Friend !!

    How will be Bonus Taxed ??

    This depends on your Salary and Annual Income.

    And also it depends on the Marginal Tax Rate.

    In some companies this depends on the earnings per day.

    Bonus is something which you get apart from the Salary.

    So this is a additional benefit and as per my concern, A very less tax rate is implemented on your Bonus.

    So you can expect almost full amount in your Bonus.

    In IT Companies, the tax rate depends on the IT Tax Rate.

    Here the Tax on Bonus is same as the Tax on your Salary which is deducting from your Salary every month.

    You can use the Tax calculator for practical assumptions, that how much you need to pay.

    Tax Calculator :


    http://law.incometaxindia.gov.in/DIT/Xtras/taxcalc.aspx


    Good Luck, hope you understood !!

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