Payment of Bonus Act

Payment of Bonus Act, 1965 - MCQs with answers - Part 1
1. State true or false.

i. Bonus is an ex - gratia payment.
a. True
b. False
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2. Which formula was given by labour appellate tribunal for the
calculation of bonus?
a. Full bench formula
b. Accrual formula
c. Rounding formula
d. None of the above
3. In which year did the government set up the tripartite commission?
a. 1951
b. 1972
c. 1961
d. 1965
4. The bonus act is the outcome of the recommendation made by the
_________.
a. State government
b. Central government
c. Labour Court
d. Tripartite commission
5. On which date was the bonus act implemented by the government?
a. 2nd September, 1980
b. 2nd September, 1965
c. 1st September, 1965
d. 3rd September, 1965
6. The act is not applicable to _______ except those operating in
competition with similar other private undertakings.

a. Public enterprises
b. Private enterprises
c. Factories
d. Banks except RBI and LIC
7. Which section in the act deals with the computation of available
surplus?
a. Section 3
b. Section 3A
c. Section 5
d. Section 1
8. State true or false
i. Under section 32 of income tax act, any amount by way of depreciation
admissible in accordance is deductible from the gross profit calculation.
a. True
b. False
9. Complete the formula used for calculating bonus for basic salary
which is more than 3500.
Bonus = _______ * (Bonus Months)* 20%
a. Basic salary
b. Ex gratia
c. 3500
d. 8400
10. As per the act what is the minimum number of days an employee
must have worked in an establishment to be eligible for bonus?
a. 240 working days
b. 30 working days
c. 120 working days
d. 365 working days
1. On what grounds an employee will be disqualified from getting

bonus?
a. Fraud
b. Riotous or violent behaviour while on the premises
c. Theft, misappropriation or sabotage of any property of the establishment
d. All of the above
2. What is the minimum amount of bonus paid to an employee?
a. 8.33%
b. 8.5%
c. 8%
d. 8.3%
3. The maximum amount of bonus to be paid in an accounting year as
per section 10 of this act is ____.
a. 8.33%
b. 10%
c. 20%
d. 15%
i. Where the salary or wages of an employee exceeds 2500 rupees per month the
bonus payable as per section 10 of the act shall be calculated on 2500 rupees
per month only.
a. True
b. False
5. Which section deals with the computation of number of working
days?
a. Section 10
b. Section 11
c. Section 13
d. Section 14

i. If any employee is found guilty of misconduct causing financial loss to the
employer, then it is lawful for the employer to deduct the amount of loss from
the amount of bonus payable by him to the employee.
a. True
b. False
7. What is the mode of paying bonus to the employees as specified
in the act?
a. Cash
b. Cheque
c. Account transfer
d. In kind
8. The payment of bonus shall be made within ______ from the date on
which the award becomes enforceable or the settlement comes into
operation where there is dispute regarding payment of bonus.
a. 15 days
b. On the day of settlement
c. 1 month
9. Match the following particulars with their respective sections in the
Act.
1.
2.
3.
4.
Cognizance of offences ---- a. Section 28

Inspectors ---------------- b. Section 2
Penalty ------------------- c. section 30
Definitions -------------- d. section 27
a. 1-c, 2-d, 3-a, 4-b

b. 1-d, 2-c, 3-a, 4-b
c. 1-b, 2-a, 3-d, 4-c
d. 1-a, 2-d, 3-b, 4-c
10. The payment of bonus should be made within a period of _____
months from the close of the accounting year.

a. 2 months
b. 6 months
c. 8 months

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Bonus Act, 1965 - MCQs with answers - Part 2 > Post your comment
Payment of Bonus Act, 1965 - MCQs with answers - Part 2 (03-18-2015)

1. On what grounds an employee will be disqualified from getting bonus?
a. Fraud
b. Riotous or violent behaviour while on the premises
c. Theft, misappropriation or sabotage of any property of the establishment
d. All of the above
2. What is the minimum amount of bonus paid to an employee?
a. 8.33%
b. 8.5%
c. 8%
d. 8.3%
3. The maximum amount of bonus to be paid in an accounting year as per

section 10 of this act is ____.
a. 8.33%
b. 10%
c. 20%
d. 15%
i. Where the salary or wages of an employee exceeds 2500 rupees per month the
bonus payable as per section 10 of the act shall be calculated on 2500 rupees
per month only.
a. True
b. False
5. Which section deals with the computation of number of working days?
a. Section 10
b. Section 11
c. Section 13
d. Section 14
i. If any employee is found guilty of misconduct causing financial loss to the

employer, then it is lawful for the employer to deduct the amount of loss from
the amount of bonus payable by him to the employee.
a. True
b. False
7. What is the mode of paying bonus to the employees as specified in the

act?
a. Cash
b. Cheque
c. Account transfer
d. In kind
8. The payment of bonus shall be made within ______ from the date on which the
award becomes enforceable or the settlement comes into operation where there
is dispute regarding payment of bonus.
a. 15 days
b. On the day of settlement
c. 1 month
9. Match the following particulars with their respective sections in the Act.
1. Cognizance of offences ---- a. Section 28

2. Inspectors ---------------- b. Section 2
3. Penalty ------------------- c. section 30
4. Definitions
-------------- d. section 27
a. 1-c, 2-d, 3-a, 4-b

b. 1-d, 2-c, 3-a, 4-b
c. 1-b, 2-a, 3-d, 4-c
d. 1-a, 2-d, 3-b, 4-c
10. The payment of bonus should be made within a period of _____ months from
the close of the accounting year.
a. 2 months
b. 6 months
c. 8 months

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Payment of Bonus Act, 1965 - MCQs with answers - Part 1

1. State true or false.

competition with similar other private undertakings.

1. On what grounds an employee will be disqualified from getting

View Answer / Hide Answer

Cognizance of offences ---- a. Section 28

a. 1-c, 2-d, 3-a, 4-b

months from the close of the accounting year.