New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    According to Section 36 of the Code on Wages, 2019,

    what is the limit forcarrying forward the excess allocable surplus to the succeeding accounting years?
    A Ten percent of the total salary of the employees Correct Answer Incorrect Answer
    B Twenty percent of the total salary or wage of the employees Correct Answer Incorrect Answer
    C Fifty percent of the total profits of the establishment Correct Answer Incorrect Answer
    D There is no limit; the entire surplus must be carried forward. Correct Answer Incorrect Answer

    Solution

    Twenty percent of the total salary or wage of the employees, Explanation: As per Section36- (2) Where for any accounting year, there is no available surplus or theallocable surplus inrespect of that year falls short of the amount of minimum bonuspayable to the employees in the establishment under section 26, and there is no amountor sufficient amount carried forward and set on under sub-section (1) which could beutilised for the purpose of payment of the minimum bonus, then, such minimum amountor the deficiency, as the case may be, shall be carried forward for being set off in thesucceeding accounting year and so on up to and inclusive of the fourth accounting year insuch manner as may be prescribed by the Central Government.

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