Bonus Calculator – India

Under the Payment of Bonus Act, 1965, employees earning up to ₹21,000/month are entitled to statutory bonus. Minimum bonus is 8.33% and maximum is 20% of wages (calculated on ₹7,000 or actual salary, whichever is lower).

Yes, bonus is fully taxable as part of "Income from Salary". It is taxed at your applicable income tax slab rate. Employer deducts TDS on bonus at the time of payment based on your estimated annual income.

Statutory bonus is legally mandated under the Payment of Bonus Act for eligible employees. Performance bonus is discretionary, based on individual or company performance, and is decided by the employer without legal mandate.

Statutory bonus must be paid within 8 months of closing the accounting year. Companies typically pay bonus during Diwali (festive bonus), end of financial year (annual bonus), or after performance appraisals (performance bonus).

Employees earning up to ₹21,000 per month and who have worked for at least 30 days in the accounting year are eligible. Employees dismissed for fraud, misconduct, or violent behavior may be disqualified.

Yes, companies often include expected bonus in CTC (Cost to Company). However, unlike fixed salary components, bonus may vary based on performance. Always clarify if the bonus in CTC is guaranteed or performance-linked.

Ex-gratia is a voluntary bonus paid by the employer as a goodwill gesture, over and above statutory requirements. It is not legally mandated and is paid at the employer's discretion, often during festivals or for exceptional performance.

Net Bonus = Gross Bonus - TDS. TDS rate depends on your tax slab. For example, if you receive ₹1,00,000 bonus and are in 30% tax bracket, TDS would be ₹30,000, giving you ₹70,000 net bonus (excluding cess).

Bonus received is taxable income and cannot be claimed as deduction. However, you can reduce tax liability by investing bonus in tax-saving instruments under Section 80C (up to ₹1.5 lakh) before the financial year ends.