Is a bonus paid in April taxed in the old year?

Salary is taxed on due or receipt basis, whichever is earlier. A bonus paid in April that was not due earlier is usually taxed in the new year.

What if an employee does not submit proofs?

Disallow the unproven claims and deduct TDS accordingly. The employee can still claim eligible deductions in the return.

Is the consultation really free?

Yes. The consultation and case assessment are free, with no obligation. If you decide to go ahead, there is still nothing to pay upfront: FundRaksha Legal charges 30% only on the amount actually recovered. Court fees, if a matter goes to court, are borne by the client.

Are there any upfront fees?

No. FundRaksha Legal charges a 30% success fee, only on the amount actually recovered. If nothing is recovered, there is no success fee. Court fees, if any, are borne by you and told to you upfront.

How fast does my case start?

Within 24 hours of receiving your complete documents, a dedicated advocate is assigned and the legal notice is sent as an e-notice, followed by registered post.

Do most cases go to court?

No. About 60% of our cases settle before anything is filed, through the notice, negotiation and a payment plan. The rest go to MSME Samadhaan, a Section 138 complaint, a civil suit or arbitration, handled by the same advocate.

Do you work with businesses anywhere in India?

Yes. Notices, filings and follow-ups are handled digitally, and advocates appear wherever the matter is heard. FundRaksha works with suppliers, manufacturers, traders, distributors and service businesses in every state.

FundRaksha HR

Payroll year-end checklist for March

March payroll closes the tax year. It is the last chance to get each employee's TDS right, and it starts a chain of deadlines that runs to 15 June.

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Short answer

In March: verify Form No. 124 proofs, recompute each employee's tax for the year and true up TDS in the March salary (section 392(5)(c)), capture arrears and bonuses paid by 31 March, and reconcile salary, PF, ESI and TDS totals. Then deposit March TDS by 30 April, file Q4 Form No. 138 by 31 May and issue Form No. 130 by 15 June. The ESI contribution period also ends on 31 March.

Checklist

Task	By	Rule
Collect and verify Form 124 proofs (HRA, loan, investments)	Early March	Section 392(5)(b), rule 205
Recompute annual tax; set March TDS to clear the balance	March payroll	Section 392(5)(c)
Include arrears, bonus, leave encashment paid in March	March payroll	Section 392(1)
Reconcile salary, TDS and challans for Q1 to Q4	Before 31 May	Form No. 138
Deposit March TDS	30 April	Rule 218(2)(a)
File Q4 Form No. 138 with Annexures II and III	31 May	Rule 219
Issue Form No. 130	15 June	Rule 215
Pay March PF (ECR) and ESI	15 April	EPF Scheme para 38; ESIC
Close ESI contribution period	31 March	esic.gov.in

Worked example: March true-up

Asha (old regime, ₹15,00,000 salary) was estimated at taxable income ₹11,52,600 and tax ₹1,64,611, so ₹13,718 a month was deducted for 11 months (₹1,50,898). In February she cannot prove a ₹1,50,000 investment claim. Taxable income becomes ₹13,02,600 and tax ₹2,03,280 + 4% cess = ₹2,11,411. March TDS = ₹2,11,411 − ₹1,50,898 = ₹60,513. When the jump is this large, check the 50% overall deduction limit under the Code on Wages; better still, verify proofs in January and spread the correction over three months.

Labour law items at year end

Check leave balances if your leave year is the financial year; under the OSH Code the leave year is the calendar year.
Archive the year's registers (wage, attendance, leave); the Codes require five years.
Plan April increments and the variable DA revision due from 1 April.

FundRaksha HR runs the year-end TDS true-up for each employee and lists anyone with pending proofs. Next: the April payroll checklist.

Sources

Last reviewed: 2026-10-21. Information for Indian businesses; not legal advice.

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A review of your invoices, purchase orders, delivery proof and the buyer’s replies
An honest assessment of recovery chances and the right route: reminders, legal notice, MSME Samadhaan, Section 138 or a civil suit
A realistic timeline and the exact cost: nothing upfront, a success fee only on recovery
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Keep these ready

The unpaid invoice(s) and payment terms
Purchase order, delivery challan, e-way bill or proof of service
Messages, emails or letters about the payment
For a bounced cheque: the cheque and the bank return memo

No recovery, no fee. Court fees, if any, are borne by the client and told upfront.

FAQ

Questions, answered

The employer can reduce March TDS to adjust an excess (section 392(5)(c)). Tax already deposited is not refunded by the employer; the employee claims it in the return.

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This page is general information for Indian businesses, not legal advice for your specific case. Laws, rates and procedures change; speak to an advocate before acting. FundRaksha LegalTech Pvt Ltd is a technology company; legal work is carried out by enrolled advocates.