Item No.

Particulars

Amount of sub-items

Amount of main items

Remarks

1.

Net Profit as per Profits and Loss Account.

2.

Add back provision for :

1. Bonus to employees.
2. Depreciation.
3. Direct taxes, including the provision (if any) for previous accounting years. (If, and to the extent, charged to Profit and Loss Account.)
4. [(Note: Subs. by Act 66 of 1980, Sec.19) Development rebate/Investment allowance/Development allowance reserve.] (If, and to the extent, charged to Profit and Loss Account.)
5. Any other reserves

Total of Item No.2 Rs.

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 –

1. The amount, if any, paid to, or provided for payment to, an approved gratuity fund ; and
2. The amount actually paid to employees on their retirement or on termination of their employment for any reason.]

(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.

Total of Item No.3

4.

Add also Income, profits or gains (if any) credited directly to reserves, other than –

1. 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 ;
2. Profits of, and receipts relating to, any business situated outside India ;
3. Income of foreign concerns from investments outside India.

Net total of Item No.4

5.

Total of Item Nos. 1,2,3 and 4.

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 –

1. 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) ;
2. Losses of any business situated outside India.

(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.]

Total of Item No.6 Rs.

 7.

 Gross Profits for purposes of bonus (item No.5 minus Item No.6)

Rs.