The Payment of Bonus Act, 1965
[THE SECOND SCHEDULE]
[(Note: Subs. by ibid, Sec.19)
See Sec. 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 Profits and Loss Account. |
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2. |
Add back provision for :
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Total of Item No.2 Rs. |
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3. |
Add back also: (If, and to the extent, charged to Profit and Loss Account.) (a) Bonus paid to employees in respect of previous accounting years. [(aa) (Note: Ins. by Act 23 of 1976, Sec.26 (w.e.f. (25th September, 1975)) The amount debited in respect of gratuity paid or payable to employees in excess of the aggregate of –
(b) Donations in excess of the amount admissible for income-tax. (c) Any annuity due, or commuted value of any annuity paid, under the provisions of Sec. 280-D of the Income-tax Act during the accounting year. (d) Capital expenditure (other than capital expenditure on scientific research which is allowed as 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 situated outside India. |
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Total of Item No.3 |
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4. |
Add also Income, profits or gains (if any) credited directly to reserves, other than –
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Net total of Item No.4 |
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5. |
Total of Item Nos. 1,2,3 and 4. |
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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 investments outside India. (d) Expenditure or losses (if any) debited directly to reserves, other than –
(e) In the case of foreign concerns proportionate administrative (over head) expenses of Head Office allocable to Indian business. (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). (f) Refund of any direct tax paid for previous accounting years and excess provision, if any, of previous accounting years relating to bonus, depreciation, taxation or development rebate or development allowance, if written back. (Ins. by s 26. (w.e.f. 25th September, 1975) (g) [(Note: Subs. by Act 23 of 1976) Cash subsidy, if any, given by the Government or by body corporate established by any law for the time being in force or by any other agency for specified purposes and the proceeds of which are reserved for such purposes.] |
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Total of Item No.6 Rs. |
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7. |
Gross Profits for purposes of bonus (item No.5 minus Item No.6) |
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Rs. |
[(Ins. by s 26. (w.e.f. 25th September, 1975) Explanation – In sub-item (aa) of Item 3, “approved gratuity fund” has the same meaning assigned to it in Cl. (5) of Sec.2 of the Income-tax Act.
The Payment of Bonus Act, 1965