Section 48: Audit of account of employers not being corporations or companies
Reviewed by Finin2min Editorial Desk · Last reviewed 30 August 2026
Allows audit of accounts of non-corporate employers where required for deciding bonus-related questions.
Principal remaining provisions commenced on 21 November 2025 under S.O. 5322(E), read with the earlier partial commencement; check section-specific footnotes in the current India Code text.
Provision / India Code ↗ · Official Act PDF ↗ · 2026 Central Rules ↗
Finin2min analysis — what the section actually does
Operative clauses
- (1) Where any claim, dispute or appeal with respect to bonus payable under this Code between an employer, not being a corporation or a company, and his employees is pending before any authority, appellate authority, Tribunal or arbitrator, as the case may be, as referred to in sub-section (1) of section 47 and the accounts of such employer audited by any auditor duly qualified to act as auditor of companies under…
- (2) When the authority, appellate authority, Tribunal or arbitrator, referred to in sub-section (1), as the case may be, finds that the accounts of such employer have not been audited by any such auditor and it is of opinion that an audit of the accounts of such employer is necessary for deciding the question referred to it, then, such authority, appellate authority, Tribunal or arbitrator, may, by order, direct…
- (3) Where an employer fails to get the accounts audited under sub-section (2), the authority, appellate authority, Tribunal or arbitrator, referred to in sub-section (1), as the case may be, may, without prejudice to the provisions of section 54, get the accounts audited by such auditor or auditors as it thinks fit.
- (4) When the accounts are audited under sub-section (2) or sub-section (3), the provisions of section 47 shall, so far as may be, apply to the accounts so audited.
- (5) The expenses of, and incidental to, any audit under sub-section (3) including the remuneration of the auditor or auditors shall be determined by the authority, appellate authority, Tribunal or arbitrator, referred to in sub-section (1), as the case may be, and paid by the employer and in default of such payment shall be recoverable by the authority referred to in sub-section (3) of section 45 from the…
Provisos, explanations & qualifications
- No proviso/explanation was separately extracted from this section text.
Thresholds and timelines in the text
- No explicit day/month/year/hour/percentage/rupee expression was detected in this section text.
Actors expressly appearing in the text
Employer, Employee / worker, Authority / officer, Tribunal, Corporation / EPFO / Board
Full statutory text — Section 48
48. Audit of account of employers not being corporations or companies.—(1) Where any claim,
dispute or appeal with respect to bonus payable under this Code between an employer, not being a
corporation or a company, and his employees is pending before any authority, appellate authority,
Tribunal or arbitrator, as the case may be, as referred to in sub-section (1) of section 47 and the accounts
of such employer audited by any auditor duly qualified to act as auditor of companies under the
provisions of section 141 of the Companies Act, 2013 (18 of 2013), are produced before such authority,
appellate authority, Tribunal or arbitrator, then the provisions of section 47 shall, so far as may be, apply
to the accounts so audited.
(2) When the authority, appellate authority, Tribunal or arbitrator, referred to in sub-section (1), as the
case may be, finds that the accounts of such employer have not been audited by any such auditor and it is
of opinion that an audit of the accounts of such employer is necessary for deciding the question referred to
it, then, such authority, appellate authority, Tribunal or arbitrator, may, by order, direct the employer to
get his accounts audited within such time as may be specified in the direction or within such further time
as it may allow by such auditor or auditors as it thinks fit and thereupon the employer shall comply with
such direction.
(3) Where an employer fails to get the accounts audited under sub-section (2), the authority, appellate
authority, Tribunal or arbitrator, referred to in sub-section (1), as the case may be, may, without prejudice
to the provisions of section 54, get the accounts audited by such auditor or auditors as it thinks fit.
(4) When the accounts are audited under sub-section (2) or sub-section (3), the provisions of section
47 shall, so far as may be, apply to the accounts so audited.
(5) The expenses of, and incidental to, any audit under sub-section (3) including the remuneration of
the auditor or auditors shall be determined by the authority, appellate authority, Tribunal or arbitrator,
referred to in sub-section (1), as the case may be, and paid by the employer and in default of such
payment shall be recoverable by the authority referred to in sub-section (3) of section 45 from the
employer in the manner provided in that sub-section.How to apply this provision
- Primary statutory test — (1) Where any claim, dispute or appeal with respect to bonus payable under this Code between an employer, not being a corporation or a company, and his employees is pending before any authority, appellate authority, Tribunal or arbitrator, as the case may be, as referred to in sub-section (1) of section 47 and the accounts of such employer audited by any auditor duly qualified to act as auditor of companies under…
- Additional operative limb — (2) When the authority, appellate authority, Tribunal or arbitrator, referred to in sub-section (1), as the case may be, finds that the accounts of such employer have not been audited by any such auditor and it is of opinion that an audit of the accounts of such employer is necessary for deciding the question referred to it, then, such authority, appellate authority, Tribunal or arbitrator, may, by order, direct…
- Evidence file — retain facts and records proving the role/status of: Employer, Employee / worker, Authority / officer, Tribunal, Corporation / EPFO / Board.
Rules, forms and cross-references
Direct 2026 Central Rule mapping
Forms mapped
No prescribed form is directly mapped in the current concordance.
Other sections cited in this text
Related Labour Hub resources
A direct concordance is not exhaustive. Central/State jurisdiction, schemes, authority appointments, saved instruments and later notifications may change the practical route without changing the section wording.
Worked example
An employer configuring payroll for audit of account of employers not being corporations or companies should first identify the employee and wage period, then apply the exact provision and any linked rule. The system rule should be tested against a sample payslip and bank/payment record. A text point to test is: “(1) Where any claim, dispute or appeal with respect to bonus payable under this Code between an employer, not being a corporation or a company, and his employees is pending before any authority, appellate authority, Tribunal or arbitrator, as the case may be, as referred to in su”
Illustration only; it is not statutory text or a substitute for applying the actual facts, jurisdiction, current rule/scheme and official instrument.
Q&A — Section 48
What does Section 48 of the Code on Wages cover?
Allows audit of accounts of non-corporate employers where required for deciding bonus-related questions.
What is the main legal requirement or power in Section 48?
The first operative clause identified from the official text is: “(1) Where any claim, dispute or appeal with respect to bonus payable under this Code between an employer, not being a corporation or a company, and his employees is pending before any authority, appellate authority, Tribunal or arbitrator, as the case may be, as referred to in sub-section (1) of section 47 and the accounts of such employer audited by any auditor duly qualified to act as auditor of companies under…” Read it with the remaining subsections and any proviso below.
Does Section 48 contain a proviso or explanation?
No standalone proviso or explanation was extracted from this section text. Check the full text below for clause-level qualifications.
What time limit, percentage or amount appears in Section 48?
No explicit day/month/year/hour/percentage/rupee expression was detected in the official section text.
Which 2026 Central Rules are linked to Section 48?
No direct Central Rule is recorded in the current concordance. That does not exclude a relevant scheme, notification, State rule or enabling provision.
Is Section 48 currently operative?
Principal remaining provisions commenced on 21 November 2025 under S.O. 5322(E), read with the earlier partial commencement; check section-specific footnotes in the current India Code text.
Source & verification trail
Act: Code on Wages, 2019 — official India Code PDF ↗
Central Rules: Code on Wages (Central) Rules, 2026 — G.S.R. 343(E), 8 May 2026 ↗
Official library: Ministry of Labour & Employment — Labour Codes ↗
Source check: 20 August 2026. Individual professional interpretation should be re-reviewed when the section, rules, notification, scheme, State overlay or controlling judgment changes.