Rule 27: Manner of carrying forward when allocable surplus exceeds maximum bonus payable

Finin2min analysis — operative rule mechanics

Full notified text — Rule 27

27. Manner of carrying forward when allocable surplus exceeds maximum bonus payable:––
Under sub-section (1) of section 36, where for any accounting year, the allocable surplus exceeds the
amount of maximum bonus payable to the employees in the establishment under section 26, then,
the excess shall, subject to a limit of twenty per cent. of the total salary or wage of the employees
employed in the establishment in that accounting year, be carried forward for being set on in the
succeeding accounting year and so on upto and inclusive of the fourth accounting year to be utilised
for the purpose of payment of bonus in the manner as illustrated in Appendix A.

Application and evidence

1. Primary statutory test — :–– Under sub-section (1) of section 36, where for any accounting year, the allocable surplus exceeds the amount of maximum bonus payable to the employees in the establishment under section 26, then, the excess shall, subject to a limit of twenty per cent. of the total salary or wage of the employees employed in the establishment in that accounting year, be carried forward for being set on in the succeeding…
2. Numerical or timing control — Manner of carrying forward when allocable surplus exceeds maximum bonus payable:–– Under sub-section (1) of section 36, where for any accounting year, the allocable surplus exceeds the amount of maximum bonus payable to the employees in the establishment under section 26, then, the excess shall, subject to a limit of twenty per cent. of the total salary…
3. Code Section mapping — 26, 36. Read the mapped provision together with this text rather than treating the concordance as a substitute for it.
4. Evidence file — retain facts and records proving the role/status of: Employee / worker.

Cross-references & prescribed forms

Worked example

Q&A — Rule 27

Primary sources