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  1. Click ‘Get Form’ to open the bonus request form in the editor.
  2. In the 'Manager Requesting Bonus' field, enter your name to identify who is requesting the bonus.
  3. Fill in the 'Employee' field with the name of the employee being nominated for the bonus.
  4. Provide the 'Title' of the employee to clarify their position within the organization.
  5. Specify the 'Proposed Amount' of the bonus you are recommending based on their contributions.
  6. Enter today's date in the 'Date' field to document when this request is made.
  7. In the 'Justification' section, detail why this bonus is warranted, ensuring you meet all criteria outlined in the form. Use additional sheets if necessary.
  8. Sign in the 'Manager’s Signature' field to validate your request before submission.

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Understanding Your Bonus Calculation According to the Payment of Bonus Act, 1965 (as amended): Eligibility: Employees with salary/wages up to ₹21,000 (Basic + DA) per month are eligible for statutory bonus. Bonus Range: The statutory bonus ranges from a minimum of 8.33% to a maximum of 20% of the salary.
Bonus Form A amp B Form A is for computing allocable surplus for an accounting year by deducting allowances from gross profits. Form B is for setting on or offsetting the allocable surplus amount calculated in Form A.
Minimum Bonus: Set at 8.33% of Basic Salary + DA (up to ₹7,000 or minimum wage, whichever is higher) or ₹100 (₹60 for employees under 15), whichever is higher. For example, if Basic Salary + DA is ₹7,000, the minimum bonus is ₹583 (8.33% of ₹7,000). In states with higher minimum wages, the liability may increase.
Form C is for recording details of bonus paid to individual employees, including their name, salary, and amount paid. Form D appears to be an annual return submitted to authorities with totals on bonus amounts payable and actually paid.
The bonus that you receive from your employer is considered as Income under the head Salary, and tax on such bonus is applicable for the same financial year when your employer declares it. Even if you receive the amount in the next year, you are liable to pay the tax for the financial year it has been declared.
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People also ask

Form A is for calculating available surplus and allocable surplus percentage for the accounting year. Form B is for setting on or setting off the allocable surplus amount from year to year.
Here is the basic run down of the rules for reporting compensation, including bonuses paid to employees vs. independent contractors: If the recipient is an employee, the employer should always report wages, salaries, fees, bonuses, commissions, tips and other compensation as income on the employees W-2, not on a 1099.

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