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Your 13th Salary
In India,
initially there was a concept of salary to be paid on a weekly basis.
So you received 52 salaries in a year.
But when British started ruling India they came up with concept of monthly salary
which meant you were getting paid for 48 weeks only.
So if we have 4 weeks in a month, 13 salaries should have been distributed but
as per a monthly structure they were giving only 12 salaries in a year
When people realized that this was a loss to them in terms of one salary
many protest rallies were organised in Maharashtra during 1930-1940
The British then came up with a solution to this problem
After discussion with leaders about how to distribute this 13th salary,
they decided Diwali being the biggest festival of India,
they would distribute this 13th salary during Diwali.
This is the story of the Diwali Bonus.
An employer gave a cash gift of 6,500 to his employee for purchase a watch, in this case how much amount shall be taxable?
