Bonus or commission paid to employees - Section 36(1)(ii)

Deductibility of employee bonus allowed on payment; accrual claims subject to section 43B and statutory limits don't bar deduction.

Deduction under Section 36(1)(ii) allows sums paid as employee bonus or commission to be deducted even if they exceed Payment of Bonus Act limits, provided they are paid within time limits; the provision is payment based but accrual claims may be recognised subject to Section 43B. Customary bonus payments fall outside Section 36(1)(ii) and therefore do not attract disallowance under the timing rules of Section 43B.