Dear Sir, Please help me how to write Bonus Register A & B and help me how to find out allocable surplus and how to calculate the bonus as per this Regards
From India, Bangalore
From India, Bangalore
Please go through the details given below.
1. Computation of gross profits.
2. Computation of available surplus.
3. Sums deductible from gross profits.
4. Calculation of direct tax payable by the employer.
Computation of gross profits.-The gross profits derived by an employer from an establishment in respect of the accounting year shall-
(a) in the case of a banking company, be calculated in the manner specified in the First Schedule;
(b) in any other case, be calculated in the manner specified in the Second Schedule.]
5. Computation of available surplus.-The available surplus in respect of any accounting year shall be the gross profits for that year after deducting there from the sums referred to in section 6:
1[Provided that the available surplus in respect of the accounting year commencing on any day in. the year 1968 and in respect of every subsequent accounting year shall be the aggregate of-
(a) the gross profits for that accounting year after deducting there from the sums referred to in section 6; and
(b) an amount equal to the difference between-
(i) the direct tax, calculated in accordance with the provisions of section 7, in respect of an amount equal to the gross profits of the employer for the immediately preceding accounting year; and
(ii) the direct tax, calculated in accordance with the provisions of section 7, in respect of an amount equal to the gross profits of the employer for such preceding accounting year after deducting there from the amount of bonus which the employer has paid or is liable to pay to his employees in accordance with the provisions of this Act for that year.]
6. Sums deductible from gross profits.-The following sums shall be deducted from the gross profits as prior charges, namely:-
(a) any amount. by way of depreciation admissible in accordance with the provisions of sub-section (1) of section 32 of the Income-tax Act, or in accordance with the provisions of the agricultural income-tax law, as the case may be:
Provided that where an employer has been paying bonus to his employees under a settlement or an award or agreement made before the 29th May, 1965, and subsisting on that date after deducting from the gross profits notional normal depreciation, then, the amount of depreciation to be deducted under this clause shall, at the option of such employer (such option to be exercised once and within one year from that date) continue to be such notional normal depreciation;
(b) any amount by way of 2[development rebate or investment allowance or development allowance] which the employer is entitled to deduct from his income under the income-tax Act;
(c) subject to the provisions of section 7, any direct tax which the employer is liable to pay for the accounting year in respect of his income, profits and gains during that year;
(d) such further sums as are specified in respect of the employer in the 1[Third Schedule].
7. Calculation of direct tax payable by the employer.- 2[Any direct tax payable by the employer] for any accounting year shall, subject to the following provisions, be calculated at the rates applicable to the income of the employer for that year, namely:-
(a) in calculating such tax no account shall be taken of-
(i) any loss incurred by the employer in respect of any previous accounting year and carried forward under any law for the time being in force relating to direct taxes;
(ii) any arrears of depreciation which the employer is entitled to add to the amount of the allowance for depreciation for any following accounting year or years under sub-section (2) of section 32 of the Income-tax Act;
(iii) any exemption conferred on the employer under section 84 of the Income-tax Act or of any deduction to which he is entitled under sub-section (1) of section 101 of that Act, as in force immediately before the commencement of the Finance Act 1965 (10 of 1965);
(b) where the employer is a religious or a charitable institution to which the provisions of section 32 do not apply and the whole or any part of its income is exempt from tax under the Income-tax Act, then, with respect to the income so exempted, such institution shall be treated as if it were a company in which the public are substantially interested within the meaning of that Act;
(c) where the employer is individual or a Hindu undivided family, the tax payable by such employer under the Income-tax Act shall be calculated on the basis that the income derived by him from the establishment is his only income;
(d) where the income of any employer includes any profits and gains derived from the export of any goods or merchandise out of India and any rebate on such income is allowed under any law for the time being in force relating to direct taxes, then, no account shall be taken of such rebate;
(e) no account shall be taken of any rebate l[other than development rebate or investment allowance or development allowance)] or credit or relief or deduction (not herein before mentioned in this section) in the payment of any direct tax allowed under any law for the time being in force relating to direct taxes or under the relevant annual Finance Act, for the development of any industry.
11. Payment of maximum bonus.-(1) Where in respect of any accounting year referred to in section 10, the allocable surplus exceeds the amount of minimum bonus payable to the employees under that section, the employer shall, in lieu of such minimum bonus, be bound to pay to every employee in respect of that accounting year bonus which shall be an amount in proportion to the salary or wage earned by the employee during the accounting year subject to a maximum of twenty per cent. of such salary or wage.
(2) In computing the allocable surplus under this section, the amount set on or the amount set off under the provisions of section 15 shall be taken into account in accordance with the provisions of that section.]
From India, Pune
1731. Computation of gross profits.
2. Computation of available surplus.
3. Sums deductible from gross profits.
4. Calculation of direct tax payable by the employer.
Computation of gross profits.-The gross profits derived by an employer from an establishment in respect of the accounting year shall-
(a) in the case of a banking company, be calculated in the manner specified in the First Schedule;
(b) in any other case, be calculated in the manner specified in the Second Schedule.]
5. Computation of available surplus.-The available surplus in respect of any accounting year shall be the gross profits for that year after deducting there from the sums referred to in section 6:
1[Provided that the available surplus in respect of the accounting year commencing on any day in. the year 1968 and in respect of every subsequent accounting year shall be the aggregate of-
(a) the gross profits for that accounting year after deducting there from the sums referred to in section 6; and
(b) an amount equal to the difference between-
(i) the direct tax, calculated in accordance with the provisions of section 7, in respect of an amount equal to the gross profits of the employer for the immediately preceding accounting year; and
(ii) the direct tax, calculated in accordance with the provisions of section 7, in respect of an amount equal to the gross profits of the employer for such preceding accounting year after deducting there from the amount of bonus which the employer has paid or is liable to pay to his employees in accordance with the provisions of this Act for that year.]
6. Sums deductible from gross profits.-The following sums shall be deducted from the gross profits as prior charges, namely:-
(a) any amount. by way of depreciation admissible in accordance with the provisions of sub-section (1) of section 32 of the Income-tax Act, or in accordance with the provisions of the agricultural income-tax law, as the case may be:
Provided that where an employer has been paying bonus to his employees under a settlement or an award or agreement made before the 29th May, 1965, and subsisting on that date after deducting from the gross profits notional normal depreciation, then, the amount of depreciation to be deducted under this clause shall, at the option of such employer (such option to be exercised once and within one year from that date) continue to be such notional normal depreciation;
(b) any amount by way of 2[development rebate or investment allowance or development allowance] which the employer is entitled to deduct from his income under the income-tax Act;
(c) subject to the provisions of section 7, any direct tax which the employer is liable to pay for the accounting year in respect of his income, profits and gains during that year;
(d) such further sums as are specified in respect of the employer in the 1[Third Schedule].
7. Calculation of direct tax payable by the employer.- 2[Any direct tax payable by the employer] for any accounting year shall, subject to the following provisions, be calculated at the rates applicable to the income of the employer for that year, namely:-
(a) in calculating such tax no account shall be taken of-
(i) any loss incurred by the employer in respect of any previous accounting year and carried forward under any law for the time being in force relating to direct taxes;
(ii) any arrears of depreciation which the employer is entitled to add to the amount of the allowance for depreciation for any following accounting year or years under sub-section (2) of section 32 of the Income-tax Act;
(iii) any exemption conferred on the employer under section 84 of the Income-tax Act or of any deduction to which he is entitled under sub-section (1) of section 101 of that Act, as in force immediately before the commencement of the Finance Act 1965 (10 of 1965);
(b) where the employer is a religious or a charitable institution to which the provisions of section 32 do not apply and the whole or any part of its income is exempt from tax under the Income-tax Act, then, with respect to the income so exempted, such institution shall be treated as if it were a company in which the public are substantially interested within the meaning of that Act;
(c) where the employer is individual or a Hindu undivided family, the tax payable by such employer under the Income-tax Act shall be calculated on the basis that the income derived by him from the establishment is his only income;
(d) where the income of any employer includes any profits and gains derived from the export of any goods or merchandise out of India and any rebate on such income is allowed under any law for the time being in force relating to direct taxes, then, no account shall be taken of such rebate;
(e) no account shall be taken of any rebate l[other than development rebate or investment allowance or development allowance)] or credit or relief or deduction (not herein before mentioned in this section) in the payment of any direct tax allowed under any law for the time being in force relating to direct taxes or under the relevant annual Finance Act, for the development of any industry.
11. Payment of maximum bonus.-(1) Where in respect of any accounting year referred to in section 10, the allocable surplus exceeds the amount of minimum bonus payable to the employees under that section, the employer shall, in lieu of such minimum bonus, be bound to pay to every employee in respect of that accounting year bonus which shall be an amount in proportion to the salary or wage earned by the employee during the accounting year subject to a maximum of twenty per cent. of such salary or wage.
(2) In computing the allocable surplus under this section, the amount set on or the amount set off under the provisions of section 15 shall be taken into account in accordance with the provisions of that section.]
From India, Pune
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