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THE FIRST SCHEDULE

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[See section 4(a)]

COMPUTATION OF GROSS PROFITS

ACCOUNTING YEAR ENDING……………

Item No. Particulars Amount of sub-items Amount of main items Remarks
*1. Net Profit shown in the Profit and Loss Account after making usual and necessary provisions. Rs. Rs.  
2. Add back provision for:
(a) Bonus to employees.
(b) Depreciation
(c) Any other Rebate Reserve
(d) Any other reserves.
   

 

See foot-note (1)
  Total of Item No. 2 Rs.   See foot-note (1)
3. Add back also: 
(a) Bonus paid to employees in respect of previous accounting years.
(b) The amount debited in respect of gratuity paid or payable to employees in excess of the aggregate of - 
(i) the amount, if any, paid to, or provided for payment to, an approved gratuity fund; and
(ii) the amount actually paid to employees on their retirement or on termination of their employment for any reason.
(c) Donation in excess of the amount admissible for income-tax.
(d) Capital expenditure (other than capital expenditure on scientific research which is allowed as a deduction under any law for the time being in force relating to direct taxes) and capital losses (other than losses on sale of capital assets on which depreciation has been allowed for income-tax.
(e) Any amount certified by the Reserve Bank of India in term of sub-section (2) of section 34A of the Banking Regulation Act, 1949 (10 of 1949).
(f) Losses of, or expenditure relating to, any business situated outside India.
   

See foot-note (1)

 

 

 

 

 

See foot-note (1)
  Total of Item No. 3 . . . . Rs.    
4. Add also income, profits or gains (if any) credited directly to published or disclosed reserved, other than- 
(i) capital receipts and capital profits (including profits on the sale of capital assets on which depreciation has not been allowed for income-tax);
(ii) profits of, and receipts relating to, any business situated outside India;
(iii) income of foreign banking companies from investment outside India.
     
  Net Total of Item No. 4 . . . . . . . . Rs.    
5. Total of Item Nos. 1,2,3, and 4. . . . . Rs.    
6. Deduct :
(a) Capital receipts and capital Profits (other than profits on the sale of assets on which depreciation has been allowed for income-tax).
(b) Profits of, receipts relating to, any business situation outside India.
(c) Income of foreign banking companies from investments outside India.
(d) Expenditure or losses (if any) debited directly to published or disclosed reserves, other than-
(i) capital expenditure and capital losses (other than losses on sale of capital assets on which depreciation has not been allowed for income-tax);
(ii) losses of any business situated outside India.
(e) In the case of foreign banking companies proportionate administrative (overhead) expenses of Head Office allocable to India business.
(f) Refund of any excess direct tax paid for previous accounting years and excess provision, if any, of previous accounting years, relating to bonus, depreciation, or development rebate, if written back.
(g) Cash subsidy, if any given by the Government or by any law for the time being in force or by any other agency through budgetary grants, whether given directly to through any agency for specified purposes and the proceeds of which are reserved for such purpose.
   

See foot-note (2)

See foot-note (2)

See foot-note (2)

 

 

 

 

See foot-note (2)

 

See foot-note (2)

 

See foot-note (2)
  Total of Item No. 6 . . . . . . Rs.    
7. Gross profits for purpose of bonus (Item No. 5 minus Item No. 6) Rs.  

Explanation-In sub-item (b) of Item 3, "approved gratuity fund" has the same meaning assigned to it in clause (5) of section 2 of the Income-tax Act.

Foot-notes-

(1)          If, and to the extent, charged to Profit and Loss Account.

(2)          If, ant to the extent, credited to profits and Loss Account.

(3)          In the Proportion of India Gross Profit (Item No. 7) to Total World Gross Profit (as per Consolidated Profit and Loss Account adjusted as in Item No. 2 above only).]

 

1.            The First Schedule which was omitted by Act No.23 of 1976, s 25.ins. by Act No.43 of 1977, s.18 (w.e.f. 3 9-1977).

*             Where the profit subject to taxation is shown in the Profit and Loss Account and the provision made for taxes on income is shown, the actual provision for taxes on income shall be deducted from the profit.

 

1[THE SECOND SCHEDULE]

2[See section 4(b)]

COMPUTATION OF GROSS PROFITS

ACCOUNTING YEAR ENDING……………

ITEM NO.

PARTICULARS

AMOUNT OF SUB-ITEMS

AMOUNT OF MAIN ITEMS

REMARKS

1.

Net Profit as per Profit and Loss Account.

Rs.

Rs.

 

2.

Add back provision for:

(a)

Bonus to employees.

(b)

Depreciation

(c)

Direct taxes, including the provision (if any) for previous accounting years.

 

 

  

(Contd.)

1.            THE FIRST SCHEDULE RENUMBERED AS THE SECOND SCHEDULE BY ACT NO. 66 OF 1980, S. 19 (W.E.F. 21-8-1980).

2.            SUBS. BY S. 19, IBID., FOR "(SEE SECTION 4)" (W.E.F. 21-8-1980).

ITEM NO.

PARTICULARS

AMOUNT OF SUB-ITEMS

AMOUNT OF MAIN ITEMS

REMARKS
 

1[(D)

DEVELOPMENT REBATE/INVESTMENT ALLOWANCE/DEVELOPMENT ALLOWANCE RESERVE.]

(E)

ANY OTHER RESERVES.

RS.

RS.

SEE FOOT-NOTE (1) 
 

TOTAL OF ITEM NO. 2 . . . . . . .

RS.

  

SEE FOOT-NOTE (1)

3.

ADD BACK ALSO : 

(A)

BONUS PAID TO EMPLOYEES IN RESPECT OF PREVIOUS ACCOUNTING YEARS.

2[(AA)

THE AMOUNT DEBITED IN RESPECT OF GRATUITY PAID OR PAYABLE TO EMPLOYEES IN EXCESS OF THE AGGREGATE OF-

(I)

THE AMOUNT, IF ANY, PAID TO, OR PROVIDED FOR PAYMENT TO, AN APPROVED GRATUITY FUND; AND

(II)

THE AMOUNT ACTUALLY PAID TO EMPLOYEES ON THEIR RETIREMENT OR ON TERMINATION OF THEIR EMPLOYMENT FOR ANY REASON.]

(B)

DONATION IN EXCESS OF THE AMOUNT ADMISSIBLE FOR INCOME-TAX.

(C)

ANY ANNUITY DUE, OR COMMUTED VALUE OF ANY ANNUITY PAID, UNDER THE PROVISIONS OF SECTION 280D OF THE INCOME-TAX ACT DURING THE ACCOUNTING YEAR.

(D)

CAPITAL EXPENDITURE (OTHER THAN CAPITAL EXPENDITURE ON SCIENTIFIC RESEARCH WHICH IS ALLOWED AS A DEDUCTION UNDER ANY LAW FOR THE TIME BEING IN FORCE RELATING TO DIRECT TAXES) AND CAPITAL LOSSES (OTHER THAN LOSSES ON SALE OF CAPITAL ASSETS ON WHICH DEPRECIATION HAS BEEN ALLOWED FOR INCOME-TAX OR AGRICULTURAL INCOME-TAX).

(E)

LOSSES OF, OR EXPENDITURE RELATING TO, ANY BUSINESS SITUATES OUTSIDE INDIA.
   

SEE FOOT-NOTE (1)

 

 

 

 

 

 

 

SEE FOOT-NOTE (1)

 

TOTAL OF ITEM NO. 3 . . . . . . . .

RS.

    

4.

ADD ALSO INCOME. PROFITS OR GAINS (IF ANY) CREDITED DIRECTLY TO RESERVES, OTHER THAN-

(I)

CAPITAL RECEIPTS AND CAPITAL PROFITS (INCLUDING PROFITS ON THE SALE OF CAPITAL ASSETS ON WHICH DEPRECIATION HAS NOT BEEN ALLOWED FOR INCOME-TAX OR AGRICULTURAL INCOME-TAX);

(II)

PROFITS OF, AND RECEIPTS RELATING TO, ANY BUSINESS SITUATED OUTSIDE INDIA;

(III)

INCOME OF FOREIGN CONCERNS FROM INVESTMENTS OUTSIDE INDIA.
     
 

NET TOTAL OF ITEM NO. 4 . . . . . . .

RS.

    

5.

TOTAL OF ITEM NOS. 1,2,3, AND 4 . . . . .

RS.

 

 

6.

DEDUCT :

(A)

CAPITAL RECEIPTS AND CAPITAL PROFITS (OTHER THAN PROFITS ON THE SALE OF ASSETS ON WHICH DEPRECIATION HAS BEEN ALLOWED FOR INCOME-TAX OR AGRICULTURAL INCOME-TAX).

(B)

PROFITS OF, AND RECEIPTS RELATING TO, ANY BUSINESS SITUATED OUTSIDE INDIA.

(C)

INCOME OF FOREIGN CONCERNS FROM INVESTMENT OUTSIDE INDIA.

 

 

SEE FOOT-NOTE (2)

SEE FOOT-NOTE (2)

SEE FOOT-NOTE (2)

(CONTD.)

1.            SUBS. BY ACT NO. 66 OF 1980, S. 19, FOR ENTRY (D) (W.E.F. 21-8-1980).

2.            INS. BY ACT NO. 23 OF 1976, S. 26 (W.E.F. 25-9-1975).

 

 

ITEM NO.

PARTICULARS

AMOUNT OF SUB-ITEMS

AMOUNT OF MAIN ITEMS

REMARKS
 

(D)

EXPENDITURE OR LOSSES (IF ANY) DEBITED DIRECTLY TO RESERVES, 
OTHER THAN-

(I)

CAPITAL EXPENDITURE AND CAPITAL LOSSES (OTHER THAN LOSSES ON SALE OF CAPITAL ASSETS ON WHICH DEPRECIATION HAS NOT BEEN ALLOWED FOR INCOME-TAX OR AGRICULTURAL INCOME-TAX;

(II)

LOSSES OF ANY BUSINESS SITUATED OUTSIDE INDIA.

(E)

IN THE CASE OF FOREIGN CONCERNS PROPORTIONATE ADMINISTRATIVE (OVERHEAD) EXPENSES OF HEAD OFFICE ALLOCABLE TO INDIA BUSINESS.

(F)

REFUND OF ANY TAX PAID FOR PREVIOUS ACCOUNTING YEARS AND EXCESS PROVISION, IF ANY, OF PREVIOUS ACCOUNTING YEAR RELATING TO BONUS, DEPRECIATION, TAXATION OR DEVELOPMENT REBATE OR DEVELOPMENT ALLOWANCE, IF WRITTEN BACK.

1[(G)

CASH SUBSIDE, IF ANY, GIVEN BY THE GOVERNMENT OR BY THE BODY CORPORATE ESTABLISHED BY ANY LAW FOR THE TIME BEING IN FORCE OR BY ANY OTHER AGENCY THROUGH BUDGETARY GRANTS, WHETHER GIVEN DIRECTLY OR THROUGH ANY AGENCY FOR SPECIFIED PURPOSE AND THE PROCEEDS OF WHICH ARE RESERVED FOR SUCH PURPOSES.]

RS.

RS.

 

 

 

 

 

SEE FOOT-NOTE (2)

SEE FOOT-NOTE (2)

 

TOTAL OF ITEM NO. 6 . . . . . . . .

RS.

    

7.

GROSS PROFITS FOR PURPOSES OF BONUS (ITEM NO. 5 MINUS ITEM NO. 6) . . .

RS.

    

2[EXPLANATION-IN SUB-ITEM (AA) OF ITEM 3, "APPROVED GRATUITY FUND" HAS THE SAME MEANING ASSIGNED TO IT IN CLAUSE (5) OF SECTION 2 OF THE INCOME-TAX ACT.]

FOOT-NOTES-

(1)          IF, AND TO THE EXTENT, CHARGED TO PROFIT AND LOSS ACCOUNT.

(2)          IF, AND TO THE EXTENT, CREDITED TO PROFIT AND LOSS ACCOUNT.

(3)          IN THE PROPORTION OF INDIAN GROSS PROFIT (ITEM NO.7) TO TOTAL WORLD GROSS PROFIT (AS PER CONSOLIDATED PROFIT AND LOSS ACCOUNT, ADJUSTED AS IN ITEM NO.2 ABOVE ONLY).

 

1.            SUBS. BY ACT NO. 23 OF 1976, S. 26, SUB-ITEM (G) (W.E.F. 25-91975).

2.            INS. BY S. 26, IBID. (W.E.F. 25-9-1975).

 

1[THE THIRD SCHEDULE]

(SEE SECTION 6(D))

 

ITEM NO.

CATEGORY OF EMPLOYER

FURTHER SUMS TO BE DEDUCTED

(1)

(2)

(3)

1.

2[COMPANY, OTHER THAN A BANKING COMPANY]

(I)

THE DIVIDENDS PAYABLE ON ITS PREFERENCE SHARE CAPITAL FOR THE ACCOUNTING YEAR CALCULATED AT THE ACTUAL RATE AT WHICH SUCH DIVIDENDS ARE PAYABLE;

(II)

8.5 PER CENT. OF ITS PAID UP EQUITY SHARE CAPITAL AS AT THE COMMENCEMENT OF THE ACCOUNTING YEAR;

(III)

6 PER CENT. OF ITS RESERVES SHOWN IN ITS BALANCE-SHEET AS AT THE COMMENCEMENT OF THE ACCOUNTING YEAR, INCLUDING ANY PROFITS CARRIED FORWARD FROM THE PREVIOUS ACCOUNTING YEAR:

PROVIDED THAT WHERE THE EMPLOYER IS A FOREIGN COMPANY WITHIN THE MEANING OF SECTION 591 OF THE COMPANIES ACT, 1956 (1 OF 1956), THE TOTAL AMOUNT TO BE DEDUCTED UNDER THIS ITEM SHALL BE 8.5 PERCENT. ON THE AGGREGATE OF THE VALUE OF THE NET FIXED ASSETS AND THE CURRENT ASSETS OF THE COMPANY IN INDIA AFTER DEDUCTING THE AMOUNT OF ITS CURRENT LIABILITIES (OTHER THAN ANY AMOUNT SHOWN AS PAYABLE BY THE COMPANY TO ITS HEAD OFFICE WHETHER TOWARDS ANY ADVANCE MADE BY THE HEAD OFFICE OR OTHERWISE OR ANY INTEREST PAID BY THE COMPANY TO ITS HEAD OFFICE) IN INDIA.

3[2.

BANKING COMPANY . . . . . . . . . . .

(I)

THE DIVIDENDS PAYABLE ON ITS PREFERENCE SHARE CAPITAL FOR THE ACCOUNTING YEAR CALCULATED AT THE RATE AT WHICH SUCH DIVIDENDS ARE PAYABLE;

(II)

7.5 PER CENT. OF ITS PAID UP EQUITY SHARE CAPITAL AS AT THE COMMENCEMENT OF THE ACCOUNTING YEAR

(III)

5 PER CENT. OF ITS RESERVES SHOWN IN ITS BALANCE-SHEET AS AT THE COMMENCEMENT OF THE ACCOUNTING YEAR, INCLUDING ANY PROFITS CARRIED FORWARD FROM THE PREVIOUS ACCOUNTING YEAR;

(IV)

ANY SUM WHICH IN RESPECT OF THE ACCOUNTING YEAR, IS TRANSFERRED BY IT-

(A)

TO A RESERVE FUND UNDER SUB-SECTION (1) OF SECTION 17 OF THE BANKING REGULATION ACT, 1949 (10 OF 1949); OR

(B)

TO ANY RESERVES IN INDIA IN PURSUANCE OF ANY DIRECTION OR ADVICE GIVEN BY THE RESERVE BANK OF INDIA,

WHICHEVER IS HIGHER :

(CONTD.)

1.            THE SECOND SCHEDULE RENUMBERED AS THE THIRD SCHEDULE BY ACT NO.66 OF 1980, S 20 (W.E.F. 12-8-1980).

2.            SUBS. BY S. 20, BID., FOR "COMPANY" (W.E.F. 21-8-1980).

3.            INS. BY ACT NO. 66 OF 1980, S.20 (W.E.F. 21-8-1980).

 

ITEM NO.

CATEGORY OF EMPLOYER

FURTHER SUMS TO BE DEDUCTED

(1)

(2)

(3)
 

 

PROVIDED THAT WHERE THE BANKING COMPANY IS A FOREIGN COMPANY WITHIN THE MEANING OF SECTION 591 OF THE COMPANIES ACT, 1956 (1 OF 1956), THE AMOUNT TO BE DEDUCTED UNDER THIS ITEM SHALL BE THE AGGREGATE OF-

(I)

THE DIVIDENDS PAYABLE TO ITS PREFERENCE SHAREHOLDERS FOR THE ACCOUNTING YEAR AT THE RATE AT WHICH SUCH DIVIDENDS ARE PAYABLE ON SUCH AMOUNT AS BEARS THE SAME PROPORTION TO ITS TOTAL PREFERENCE SHARE CAPITAL AS ITS TOTAL WORKING FUNDS IN INDIA BEAR TO ITS TOTAL WORLD WORKING FUNDS;

(II)

7.5 PER CENT OF SUCH AMOUNT AS BEARS THE SAME PROPORTION TO ITS TOTAL PAID UP EQUITY SHARE CAPITAL AS ITS TOTAL WORKING FUNDS IN INDIA BEAR TO ITS TOTAL WORLD WORKING FUNDS;

(III)

5 PER CENT. OF SUCH AMOUNT AS BEARS THE SAME PROPORTION TO ITS TOTAL DISCLOSED RESERVES AS ITS TOTAL WORKING FUNDS IN INDIA BEAR TO ITS TOTAL WORLD WORKING FUNDS;

(IV)

ANY SUM WHICH, IN RESPECT OF THE ACCOUNTING YEAR, IS DEPOSITED BY IT WITH THE RESERVE BANK OF INDIA UNDER SUB-CLAUSE (II) OF CLAUSE (B) OF SUB-SECTION (2) OF SECTION 11 OF THE BANKING REGULATION ACT, 1949 (10 OF 1949), NOT EXCEEDING THE AMOUNT REQUIRED UNDER THE AFORESAID PROVISION TO BE SO DEPOSITED.]

3.

CORPORATION

(I)

8:5 PER CENT. OF ITS PAID UP CAPITAL AS AT THE COMMENCEMENT OF THE ACCOUNTING YEAR;

(II)

6 PER CENT. OF ITS RESERVES, IF ANY, SHOWN IN ITS BALANCE-SHEET AS AT THE COMMENCEMENT OF THE ACCOUNTING YEAR INCLUDING ANY PROFITS CARRIED FORWARD FROM THE PREVIOUS ACCOUNTING YEAR.

4.

CO-OPERATIVE SOCIETY

(I)

8.5 PER CENT. OF THE CAPITAL INVESTED BY SUCH SOCIETY IN ITS ESTABLISHMENT AS EVIDENCED FROM ITS BOOKS OF ACCOUNTS AT THE COMMENCEMENT OF THE ACCOUNTING YEAR;

(II)

SUCH SUM AS HAS BEEN CARRIED FORWARD IN RESPECT OF THE ACCOUNTING YEAR TO A RESERVE FUND UNDER ANY LAW RELATING TO CO-OPERATIVE SOCIETIES FOR THE TIME BEING IN FORCE. ACCOUNTING YEAR TO A RESERVE FUND UNDER ANY LAW RELATING TO CO-OPERATIVE SOCIETIES IN FORCE.

5.

ANY OTHER EMPLOYER NOT FALLING UNDER ANY OF THE AFORESAID CATEGORIES.
 

8.5 PER CENT. OF THE CAPITAL INVESTED BY HIM IN HIS ESTABLISHMENT AS EVIDENCED FROM HIS BOOKS OF ACCOUNTS AT THE COMMENCEMENT OF THE ACCOUNTING YEAR:

PROVIDED THAT WHERE SUCH EMPLOYER IS A PERSON TO WHOM CHAPTER XXII A OF THE INCOME-TAX ACT APPLIES, THE ANNUITY DEPOSIT PAYABLE BY HIM UNDER THE PROVISIONS OF THAT CHAPTER DURING THE ACCOUNTING YEAR SHALL ALSO BE DEDUCTED:

PROVIDED FURTHER THAT WHERE SUCH EMPLOYER IS A FIRM, AN AMOUNT EQUAL TO 25 PER CENT. OF THE GROSS PROFITS DERIVED BY IT FROM THE ESTABLISHMENT IN RESPECT OF THE ACCOUNTING YEAR AFTER DEDUCTING DEPRECIATION IN ACCORDANCE WITH THE PROVISIONS OF CLAUSE (A) OF SECTION 6 BY WAY OF REMUNERATION TO ALL THE PARTNERS TAKING PART IN THE CONDUCT OF BUSINESS OF THE ESTABLISHMENT SHALL ALSO BE DEDUCTED, BUT WHERE THE PARTNERSHIP AGREEMENT, WHETHER ORAL OR WRITTEN, PROVIDES FOR THE PAYMENT OF REMUNERATION TO ANY SUCH PARTNER, AND-

(I)

THE TOTAL REMUNERATION PAYABLE TO ALL SUCH PARTNERS IS LESS THAN THE SAID 25 PER CENT., THE AMOUNT PAYABLE, SUBJECT TO A MAXIMUM OF FORTY-EIGHT THOUSAND RUPEES TO EACH SUCH PARTNER; OR

(II)

THE TOTAL REMUNERATION PAYABLE TO ALL SUCH PARTNERS IS HIGHER THAN THE SAID 25 PER CENT., SUCH PERCENTAGE, OR A SUM CALCULATED AT THE RATE OF FORTY-EIGHT THOUSAND RUPEES TO EACH SUCH PARTNER, WHICHEVER IS LESS, SHALL BE DEDUCTED UNDER THIS PROVISION:

PROVIDED ALSO THAT WHERE SUCH EMPLOYER IS AN INDIVIDUAL OR A HINDU UNDIVIDED FAMILY-

(I)

AN AMOUNT EQUAL TO 25 PERCENT. OF THE GROSS PROFITS DERIVED BY SUCH EMPLOYER FROM THE ESTABLISHMENT IN RESPECT OF THE ACCOUNTING YEAR AFTER DEDUCTING DEPRECIATION IN ACCORDANCE WITH THE PROVISIONS OF CLAUSE (A) OF SECTION 6; OR

(II)

FORTY-EIGHT THOUSAND RUPEES,

WHICHEVER IS LESS, BY WAY OF REMUNERATION TO SUCH EMPLOYER, SHALL ALSO BE DEDUCTED.

6.

ANY EMPLOYER FALLING UNDER ITEM NO.1 OR ITEM NO.3 OR ITEM NO.4 OR ITEM NO. 5 AND BEING A LICENSEE WITHIN THE MEANING OF THE ELECTRICITY (SUPPLY) ACT, 1948 (54 OF 1948).

IN ADDITION TO THE SUMS DEDUCTIBLE UNDER ANY OF THE AFORESAID ITEMS, SUCH SUMS AS ARE REQUIRED TO BE APPROPRIATED BY THE LICENSEE IN RESPECT OF THE ACCOUNTING YEAR TO A RESERVE UNDER THE SIXTH SCHEDULE TO THAT ACT SHALL ALSO BE DEDUCTED.

EXPLANATION-THE EXPRESSION "RESERVES" OCCURRING IN COLUMN (3) AGAINST ITEM NOS. 1[1(III), 2(III) AND 3(II)] SHALL NOT INCLUDE ANY AMOUNT SET APART FOR THE PURPOSE OF-

(I)           PAYMENT OF ANY DIRECT TAX WHICH, ACCORDING TO THE BALANCE-SHEET, WOULD BE PAYABLE ;

(II)          MEETING ANY DEPRECIATION ADMISSIBLE IN ACCORDANCE WITH THE PROVISIONS OF CLAUSE (A) OF SECTION 6;

(III)         PAYMENT OF DIVIDENDS WHICH HAVE BEEN DECLARED,

BUT SHALL INCLUDE-

(A)          ANY AMOUNT, OVER AND ABOVE THE AMOUNT REFERRED TO IN CLAUSE (I) OF THIS EXPLANATION, SET APART AS SPECIFIC RESERVE FOR PURPOSE OF PAYMENT OF ANY DIRECT TAXI AND

(B)          ANY AMOUNT SET APART FOR MEETING ANY DEPRECIATION IN EXCESS OF THE AMOUNT ADMISSIBLE IN ACCORDANCE WITH THE PROVISIONS OF CLAUSE (A) OF SECTION 6.

 

1.            SUBS. BY ACT NO. 66 OF 1980, S.20, FOR "1(III) AND 3(II)" (W.E.F. 21-8-1980).

 

1[THE FOURTH SCHEDULE]

(SEE SECTION 15 AND 16)

IN THIS SCHEDULE, THE TOTAL AMOUNT OF BONUS EQUAL TO 8.33 PER CENT. OF THE ANNUAL SALARY OR WAGE PAYABLE TO ALL THE EMPLOYEES IS ASSUMED TO BE RS. 1,04,167. ACCORDINGLY, THE MAXIMUM BONUS TO WHICH ALL THE EMPLOYEES ARE ENTITLED TO BE PAID (TWENTY PER CENT. OF THE ANNUAL SALARY OR WAGE OF ALL THE EMPLOYEES) WOULD BE RS. 2,50,000.

 

YEAR

AMOUNT EQUAL TO SIXTY PER CENT. OR SIXTY-SEVEN PER CENT., AS THE CASE MAY BE, OF A AVAILABLE SURPLUS ALLOCABLE AS BONUS

AMOUNT PAYABLE AS BONUS

SET ON OR SET OFF OF THE YEAR CARRIED FORWARD

TOTAL SET ON OR SET OFF CARRIED FORWARD

  

(1)

(2)

(3)

(4)

(5)

(6)
 

RS.

RS.

RS.

RS.

OF (YEAR)

1.

1,04,167

1,04,167**

NIL

NIL

  

2.

6,35,000

2,50,000*

SET ON 2,50,000*

SET ON 2,50,000*

(2)

3.

2,20,000

2,50,000* (INCLUSIVE OF 30,000 FROM YEAR-2)

NIL

SET ON 2,20,000

(2)

4.

3,75,000

2,50,000*

SET ON 1,25,000*

SET ON 2,20,000
1,25,000

(2)
(4)

5.

1,40,000

2,50,000*
(INCLUSIVE OF 1,10,000 FROM YEAR-2)

NIL

SET ON 1,10,000
1,25,000

(2)
(4)

6.

3,10,000

2,50,000*

SET ON 60,000

SET ON NIL + 1,25,000 
60,000

(2)
(4)
(6)

7.

1,00,000

2,50,000* (INCLUSIVE OF 1,25,000 FROM YEAR-4 AND 25,000 FROM YEAR-6)

NIL

SET ON 
35,000

(6)

8.

NIL 
(DUE TO LOSS)

1,04,167** (INCLUSIVE OF 35,000 FROM YEAR-6)

SET OFF 
69,167

SET OFF 
69,167

(8)

9.

10,000

1,04,167***

SET OFF 
94,167

SET OFF 
69,167 
94,1267

(8)
(9)

10.

2,15,000

1,04,167**
(AFTER SETTING OFF 
69,167 FROM YEAR-8 AND 41,666 FROM YEAR-9)

NIL

SET OFF 
52,501 

(9)

NOTES_

*             MAXIMUM.

+             THE BALANCE OF RS. 1,10,000 SET ON FROM YEAR-2 LAPSES.

**           MINIMUM.

 

1.            SUBS. BY ACT NO. 66 OF 1980, S.21, FOR THE THIRD SCHEDULE (W.E.F. 21-8-1980).

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