Amounts credited to the bonus reserve account have been allowed by way of deductions under section 36(1)(ii) of the Income-tax Act, 1961

Amounts credited to the bonus reserve account have been allowed by way of deductions under section 36(1)(ii) of the Income-tax Act, 1961 https://www.taxtmi.com/circulars?id=10078 Deduction is limited to admitted or adjudicated bonus liability under the mercantile system; fair estimates may be allowed when quantum is disputed and provided in the books. Amounts credited to a bonus reserve as carried forward surplus under the Bonus Act are not deductible until the employees' claim materializes as an admitted liability. en-us Sat, 18 Aug 1973 00:00:00 +0530 Fri, 17 Jun 2011 18:12:00 +0530 TaxTMI RSS Generator Amounts credited to the bonus reserve account have been allowed by way of deductions under section 36(1)(ii) of the Income-tax Act, 1961 https://www.taxtmi.com/circulars?id=10078 Deduction is limited to admitted or adjudicated bonus liability under the mercantile system; fair estimates may be allowed when quantum is disputed and provided in the books. Amounts credited to a bonus reserve as carried forward surplus under the Bonus Act are not deductible until the employees' claim materializes as an admitted liability. Circulars Income Tax Sat, 18 Aug 1973 00:00:00 +0530 https://www.taxtmi.com/circulars?id=10078