How Can we Fill Bonus Details in ITR?

Last Updated at: Sep 07, 2022
bonus details in ITR
On 24th October 2020, the Government extended the ITR filing deadline. Now, the taxpayers will get time till 31st December to file their ITRs. In June, the deadline was extended till 30th November. This relief was provided in view of the COVID-19 situation.


Though a bit subdued due to the pandemic disruption, the festivity is still very much in the air. Festivals and bonus are synonymous for most salaried employees. Are you one of them? Have you got your bonus details already? Is your bonus due shortly? As expected, you may be pretty excited as you read this.

However, as a salaried taxpayer, you need to report any income other than salary (like a bonus from the employer, prize, lottery, etc) in your ITR. Many salaried taxpayers usually face issues while filling details in ITR. Go through this article if you have any such confusion.

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Let’s get this straight! Bonus and incentives of any kind (target linked, performance-linked, rating linked, incentive schemes and you name it!) are fully taxable. Your employer needs to deduct TDS (as per slabs applicable) on them and mention these in your Form-16. Based on these Form-16 entries, you can report such payments from your employer in your ITR under the ‘income from salary’ head.

But here is a catch though, regarding when the bonus will be taxed. If your employer has declared the bonus in this financial year, it will be taxed in this financial year itself- even if you receive it in the next FY. For example, let us suppose your employer declared an employee bonus on 18th March 2020. But, you received it on 20th April 2020. In this case, you are deemed to have received the reward in FY 2019-20 and the same needs to be reflected in your ITR for that financial year itself. However, the tax treatment will be different if the employer does not disclose the bonus amount in a particular financial year. In this case, the same will be taxed in the financial year in which you receive it.

You need to understand that the Income Tax Act 1961 specifies all types of receipts as individual earnings. Hope the above details would help you to file your ITR accurately and reduce the chances of any inadvertent errors from your end.