Question
According to Section 36(4) of the Code on Wages, 2019,
what is the purpose of carrying forward excess allocable surplus or minimum bonus to the succeeding accounting years?Solution
To utilize for the payment of bonus in subsequent years, Explanation: As per Section 36- (4) Where in any accounting year any amount has been carried forward and set on or set off under this section, then, in calculating bonus for the succeeding accounting year, the amount of set on or set off carried forward from the earliest accounting year shall first be taken into account.
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