Reasonableness of bonus deductions: assess amounts against statutory or agreement ceiling under the Bonus Act for tax allowance. Assessing officers must determine bonus deductions under section 36(1)(ii) by assessing reasonableness against pay, profits of similar businesses, and industry practice, and must adhere to the Payment of Bonus Act's ceiling or any higher ceiling validly fixed by agreement under that Act when deciding the allowable bonus for tax deduction.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Reasonableness of bonus deductions: assess amounts against statutory or agreement ceiling under the Bonus Act for tax allowance.
Assessing officers must determine bonus deductions under section 36(1)(ii) by assessing reasonableness against pay, profits of similar businesses, and industry practice, and must adhere to the Payment of Bonus Act's ceiling or any higher ceiling validly fixed by agreement under that Act when deciding the allowable bonus for tax deduction.
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