Newly set up establishments are exempted from a liability to pay bonus during the initial period which is _______.

2 years

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3 years

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4 years

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5 years

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Solution

The correct option is D 5 years
Note: If an establishment is new, then it is exempted to pay bonus for first 5 accounting years but if it starts paying bonus from 3rd accounting year then in the 4th and 5th accounting year it cannot withdraw from giving bonus.

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Newly set up establishments are exempted from a liability to pay bonus during the initial period which is _______.

The correct option is D 5 yearsNote: If an establishment is new, then it is exempted to pay bonus for first 5 accounting years but if it starts paying bonus from 3rd accounting year then in the 4th and 5th accounting year it cannot withdraw from giving bonus.

The correct option is D 5 years
Note: If an establishment is new, then it is exempted to pay bonus for first 5 accounting years but if it starts paying bonus from 3rd accounting year then in the 4th and 5th accounting year it cannot withdraw from giving bonus.