Every organisation tends to give bonus on the eve of the festivals. It might give bonus as gratitude towards their service for their organisation.
Do you know that “Bonus Received is taxable” in the hands of the employee. It will be “Taxable at the applicable slab rate” of the employee.
The Employee has to declare Bonus under head “Salaries” and pay tax according to his applicable tax slab. But there is a clause that it can be exempted under “Standard Deduction” and pay the remaining bonus amount at his applicable tax slab.
So don’t forget to add bonus to their salary head and pay tax accordingly. Do remember that “Bonus is Taxable” in the hands of the employee