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REGISTERED No. D. 221

The Gazette of India

EXTRAORDINARY

PART II—Section 1

PUBLISHED BY AUTHORITY

No. 29] NEW DELHI, SATURDAY, SEPTEMBER 25, I965/ASVINA 3, 1887

Separate paging is given to this Part in order that it may be filed

as a separate compilation

MINISTRY OF LAW

(Legislative Department)

New Delhi, the 25th September, 1065/Asvina 3, 1887 (Saka)

The following Act of Parliament received the assent of the Presi- dent on the 25th September, 1965, and is hereby published for general information:—-

THE PAYMENT OF BONUS ACT, 1965 No. 21 OF 1965

An Act to provide for the payment of bonus to persons employed in certain establishments and for matters connected therewith.

BE it enacted by Parliament in the Sixteenth Year of the Republic of India as follows: —

Short title extent and applicaticn.

1. (I) This Act may be called the Payment of Bonus Act, 1965. (2) It extends to the whole of India except the State of Jammu and Kashmir.

(3) Save as otherwise provided in this Act, it shall apply to—

(a) every factory; and (b) every other establishment in which twenty or more per- sons are employed on any day during an accounting year.

(4) Save as otherwise provided in this Act, the provisions of this Act shall, in relation to a factory or other establishment to which ( 4 t t)

519 G. of I—1,

this Act applies, have effect in respect of the accounting year com- mencing an any day in the year 1964 and in respect of every sub- sequent accounting year.

(5) An establishment to which this Act applies under clause (b) of sub-section (3) shall continue to be governed by this. Act notwith- standing- that the number of persons employed therein falls below twenty.

Definitions. 2. In this Act, unless the context otherwise requires,—

(1) "accounting year" means—

(i) in relation to n corporation, the year ending on the day on which the books and accounts of the corporation are to be closed and balanced;

(if) in relation to a company, the period in respect of which any profit and loss account of the company laid before it in annual general meeting is made up, whether that period Is a year or not;

(in) in any other case—

(a) the year commencing on the 1st day of April; or (b) if the accounts of an establishment maintained by the employer thereof are closed and balanced on any day other than the 31st day of March, then, at the option of the employer, the year ending on the day on which its accounts are so closed and balanced:

Provided that an option once exercised by .the employer under paragraph (b) of this sub-clause shall not again be exercised except with the previous per- mission in writing of the prescribed authority and upon such conditions as that authority may think fit;

(2) "agricultural income" shall have the same meaning as in the Income-tax Act;

(3) "agricultural income-tax law" means any law for the time being in force relating to the levy of tax on agricultural income;

(4) "allocable surplus" means—

(a) in relation to an employer, being a company (other than a banking company) which has not made the arrange- ments prescribed under the Income-tax Act for the declara- tion and payment within India of the dividends payable out of its profits in accordance with the provisions of section 194 of that Act, sixty-seven per cent, of the available surplus in an accounting year;

(b) in any other case, sixty per cent, of such available surplus,

and includes any amount treated as such under sub-section (2) of section 34;

(5) "appropriate Government" means—

(4 uf 1947

(i) in relation to an establishment in respect of which the appropriate Government under the Industrial Disputes Act, 1947, is the Central Government, the Central Government;

(ii) in relation to any other establishment, the Govern- ment of the State in which that other establishment is situate; (6) "available surplus" means the available surplus comput- ed under section 5;

14 of 1947.

(7) "award" means an interim or a final determination of any industrial dispute or of any question relating thereto by any Labour Court, Industrial Tribunal or National Tribunal constitut- ed under the Industrial Disputes Act, 1947, or by any other authority constituted under any corresponding law relating to investigation and settlement of industrial disputes in force in a State and includes an arbitration award made under section 10A of that Act or under that law;

10 iif 1949-

38 of 1959.

(8) "banking company" means a banking company as denned in section 5 of the Banking Companies Act, 1949, and includes the State Bank of India, any subsidiary bank as denned in the State Bank of India (Subsidiary Banks) Act, 1959, and any other banking institution which may be notified in this behalf by the Central Government;

1 of 1956. (9) "company" means any company as defined in section 3 oi the Companies Act, 1956, and includes a foreign company within the meaning of section 591 of that Act;

2 of 1912-

(JO) "co-operative society" means a society registered or deemed to be registered under the Co-operative Societies Act, 1912, or any other law for the time being in foice in any State relating to co-operative societies;

(11) "corporation" means any body corporate established by or under any Central, Provincial or State Act but does not include a companv or a co-operative society;

(12) "direct tax" means—

14 of 1963.

(a) any tax chargeable under— (i) the Income-tax Act; (ii) the Super Profits Tax Act, 1963;

7 of 1964.

(Hi) the Companies (Profits) Surtax Act, 1964; (iv) the agricultural income-tax law; and

(6) any other tax which, having regard to its nature or incidence, may be declared by the Central Government, by notification in the Official Gazette, to be a direct tax for the purposes of this Act;

(13) "employee" means any person (other than an apprentice) employed on a salary or wage not exceeding one thousand and six hundred rupees per mensem in any industry to do any skilled or unskilled manual, supervisory, managerial, administrative, technical or clerical work for hire or reward, whether the terms of employment be express or implied;

(14) "employer" includes—

(i) in relation to an establishment which is a factory, the owner or occupier of the factory, including the agent of such owner or occupier, the legal representative of a deceased owner or occupier and where a person has been named as a manager of the factory under clause (f) of sub-section (I) of section 7 of the Factories Act, 1948, the person so named; and 63 ol 194B.

(ii) in relation to any other establishment, the person who, or the authority which, has the ultimate control over the affairs of the establishment and where the said affairs are entrusted to a manager, managing director or managing agent, such manager, managing director or managing agent;

(15) "establishment m private sector" means any establish- ment other than an establishment in public sector;

(16) "establishment in public sector" means an establishment owned, controlled or managed by—

(a) a Government company as denned in section 017 of

1 of 1954,

the Companies Act, 1956;

(b) a corporation in which not less than forty per cent, of its capital is held (whether singly or taken together) by—

(i) the Government; or

(ii) the Reserve Bank of India; or

(in) a corporation owned by the Government or the Reserve Bank of India;

(17) "factory" shall have the same meaning as in clause (m) of section 2 of the Factories Act, 1948;

63 of 1948.

(IX) "gross profits" means the gross profits calculated under section 4;

(19) "Income-tax Act" means the Income-tax Act, 1961; 43 of 1961.

(20) "prescribed" means prescribed by rules made under this

Act;

(21) "salary or wage" means all remuneration (other than remuneration in respect of over-time work) capable of being ex- pressed in terms o£ money, which would, if the terms of employ- ment, express or implied, were fulfilled, be payable to an employee in respect of his employment or of work done in such employ- ment and includes dearness allowance (that is to say, all cash payments, by whatever name called, paid to an employee on account of a rise in the cost of living), but does not include—

(i) any other allowance which the employee is for the time being entitled to;

(ii) the value of any house accommodation or of supply of light, water, medical attendance or other amenity or of any service or of any concessional supply of foodgrains or other articles;

(in) any travelling concession;

(iv) any bonus (including incentive, production and attendance bonus);

(v) any contribution paid or payable by the employer to any pension fund or provident fund or for the benefit of the employee under any law for the time being in force;

(vi) any retrenchment compensation or any gratuity or other retirement benefit payable to the employee or any ex gratia payment made to him;

(vii) any commission payable to the employee.

Explanation.—Where an employee is given in lieu of the whole or part of the salary or wage payable to him, free food allowance or free food by his employer, such food allowance or the value of such food shall, for the purpose of this clause, be deemed to form part of the salary or wage of such employee;

140! 1947.

(22) words and expressions used but not defined in this Act and defined in the Industrial Disputes Act, 1947, shall have the meanings respectively assigned to them in that Act.

3. Where an establishment consists of different departments or undertakings or has branches, whether situated in the same place or in different places, all such departments or undertakings or branches shall be treated as parts of the same establishment for the purpose of computation of bonus under this Act:

Establish- ments to include depart- ments, undertaking and branches, Provided that where for any accounting year a separate balance- sheet and profit end loss account are prepared and maintained in

respect oi' any such department or undertaking or branch, then, such department or undertaking or branch shall be treated as a separate establishment for the purpose of computation of bonus under this Act for that year, unless such department or undertaking or branch was, immediately before the commencement of that account- ing year treated as part of the establishment ibr the purpose of computation of bonus.

4. The gross profits derived by an employer from an establishment in respect of any accounting year shall—

Computation of (puss profits.

(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.

Computatior of available surplus.

5. The available surplus in respect of any accounting year shall be the gross profits for that year after deducting therefrom the sums referred to in section 6.

6. The following sums shall be deducted from the gross profits as prior charges, namely:—

Sums deductible from gross profits.

(a) any amount by way of depreciation admissible in accord- ance with the provisions of sub-section (1) of section 32 of the Income-tax Act, or in accordance with the provisions of the agri- cultural 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 normel deprecia- tion, then, the amount of depreciation to be deducted under this clause shall, at the option of such employer (such option to be exeicised once and within one year from that date) continue to be such notional normal depreciation;

(b) any amount by way of development rebate or develop- ment 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 oi his income, profits and gains during that year;

(d) such further sums as are specified in respect of the employer in the Third Schedule.

Calculatkn of direct tax payable by the employer.

7. For the purpose of clause (c) of section 6, any direct tax payable by the: employer for any accounting year shall, subject to the follow- ing provisions, be calculated at the rates applicable to the income of the employer for that year, namely: —

(a) in calculating such tax no account "hall be taken of—

(i) any loss incurred by the employer in respect of any previous accounting year and carried forward under any Jaw 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 fof deprecia- tion for any following accounting year or years under sub- section (2) of section 32 of' the Income-tax Act;

Io of 196;

(Hi) any exemption conferred on the employer under sec- tion 84 of the Income-tax Act or of any deduction to which he is entitled under sub-section (1) of section 101 oi that Act, as in force immediately before the commencement of the Finance Act, 1965;

(b) where the employer is a religious or a charitable institu- tion 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 an individual or a Hindu undivid- ed family, the tax payable by such employer under the Income- tax Act shall be calculated on the basis that fhe 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 (-ball be taken of such rebate;

(e) no account shall be taken of any rebate (other than deve- lopment rebate or development allowance) or credit or relief or deduction (not hereinbefore mentioned in this section) in the payment of any direct tax allowed under any law for the time

being in force relating 10 direct taxes or under the relevant annual Finance Act, for the development of any industry.

Eligibility

for bonus. 8. Every employee shall be entitled to be paid by his employer in an accounting year, bonus, in accordance with the provisions of this Act, provided he has worked in the establishment for not less than thirty working days in that year,

Disqualifies- tion for bonus.

9. Notwithstanding anything contained in this Act, an employee shall be disqualified from receiving bonus under this Act, if he is dismissed from service for—

(a) fraud; or

(b) riotous or violent behaviour while on the premises of the establishment; or

(c) theft, misappropriation or sabotage of any property of the establishment.

Payment of minimum bonus.

10. Subject to the provisions of sections 8 and 13, every employer shall be bound to pay to every employee in an accounting year a minimum bonus which shall be four per cent, of the salary or wage earned by the employee during the accounting year or forty rupees, whichever is higher, whether there are profits in the accounting year or not:

Provided that where such employee has not completed fifteen years of age at the beginning of the accounting year, the provisions of this section shall have effect in relation to such employee as if fop the words "forty rupees", the words "twenty-five rupees" were substituted.

Payment of maximum bonus.

11. (i) Where in respect of eny accounting year the allocable surplus exceeds the amount of minimum bonus payable to the employees under section 10, the employer shall, in lieu of :;uch mini- mum bonus, he bound to pay to every employee in the 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.

Calculation, of bonus with res- pect to cert Bin employees.

12. Where the salary or wage of an employee exceeds seven hun- dred and fifty rupees per mensem, the bonus payable to such employee under section 10 or, as the case may be, under section 11, shall be calculated as if his salary or wage were seven hundred and fifty rupees per mensem.

Proportion- ate re- duction in bonus in certain cases.

13. Where an employee has not worked for all the working days in any accounting year, the minimum bonus of forty rupees or, as the case may be, of twenty five rupees, if such bonus is higher than four per cent, of his salary or wage for the days he has worked in that accounting year, shall be proportionately reduced.

Computation of number of working days.

14. For the purposes of section 13, an employee shall be deemed to have worked in an establishment in any accounting year also on the days on which—

(a) he has been laid oft under an agreement or as permitted

29 of 1946. 14 of 1947.

by standing orders under the Industrial Employment (Standing Orders) Act, 1946, or under the Industrial Disputes Act, 1947, or under any other law applicable to the establishment;

(b) he has been on leave with salary or wage; (c) he has been absent due to temporary disablement caused by accident arising out of and in the course of his employment; and

(d) the employee has been on maternity leave with salary or

wage,

during the accounting year.

Set on and let off of illocable surplus.

15. (I) Where for any accounting year the allocable surplus exceeds the amount of maximum bonus payable to the employees in the establishment under section 11, then, the excess shall, subject to a limit of twenty per cent, of the total salary or wage of the employees employed in the establishment in that accounting year, be carried forward for being set on in the succeeding accounting year and BO on up to and Inclusive of the fourth accounting year to be utilised for the purpose of payment of bonus in the manner illustrated in the Fourth Schedule.

(2) Where for any accounting year, there is no available surplus or the allocable surplus in respect of that year fells short of the amount of minimum bonus payable to the employees in the estab- lishment under section 10, and there is no amount or sufficient amount carried forward and set on under sub-section (1) which could be utilised for the purpose of payment of the minimum bonus, then, such minimum amount or the deficiency, as the case may be, shall be carried forward for being set off In the succeeding accounting year and

420 THE GAZETTE OF INDIA EXTRAORDINARY [PABT II

so on up to and inclusive of the fourth accounting year in the man- ner illustrated in the Fourth Schedule.

(3) The principle of set on and aet off as illustrated in the Fourth Schedule shall apply to all other cases not covered by sub-section (1) or sub-section (2) for the purpose of payment of bonus under this Act,

(4) Where in any accounting year any amount has been carried for- ward and set on or aet off under this section, then, in calculating bonus for the succeeding accounting year, the ©mount of set on or

set off carried forward from the earliest accounting year shall first be taken into account.

16. (2) Where an establishment is newly set up, whether before or after the commencement of this Act, the employees of such establishment shall be entitled to be paid bonus under this Act only—

Special provisions with respect to certain establish- ro"nti.

(a) from the accounting year in which the employer derives profit from such establishment; or

(b) from the sixth accounting year following the accounting

year in which the employer sells the goods produced or manu- factured by him or rendeFs services, as the case may be, from such establishment,

whichever is earlier:

Provided that in the case of any such establishment the employees thereof shall not, save as otherwise provided in section 33, be entitl- ed to be paid bonus under this Act in respect of any accounting year prior to the accounting year commencing on any day in the year 1964.

Explanation I.—For the purpose of this section, an establishment shall not be deemed to be newly set up merely by reason of a change in its location, management, name or ownership.

Explanation II.—For the purpose of clause (a), an employer shall not be deemed to have derived profit in any accounting year unless—

(a) he has made provision for that year's depreciation to which he is entitled under the Income-tax Act or, as the case may be, under the agricultural income-tax law; and

(b) the arrears of such depreciation and losses incurred by him in respect of the establishment for the previous accounting years have been fully set off against his profits.

Explanation III.—For the purpose of clause (b), sale of the goods produced or manufactured during the course of the trial run of an?

factory or of the prospecting stage of any mine or an oil-field shall not be taken into consideration and where any question arises with regard to such production or manufacture, the decision of the appro- priate Government, made after giving the parties a reasonable oppor- tunity of representing the case, shall be final and shall not be called in question by any court or other authority.

(2) The provisions of sub-section (J) shall, so far as may be, apply to new departments or undertakings or branches set up by existing establishments:

Provided that if an employer in relation to an existing establish- ment consisting of different departments or undertakings or branches (whether or not in the same industry) set up at different periods has, before the 29th May, 1965, been paying bonus to the employees of all such departments or undertakings or branches irrespective of the date on which such departments or undertakings or branches were set up, on the basis of the consolidated profits computed in respect of all such departments or undertakings or branches, then, such employer shall be liable to pay bonus in accordance with the provisions of this Act to the employees of all such departments or undertakings or branches (whether set up before or after that date) on the basis of the, consolidated profits computed as afore- said.

17. Where in any accounting year—

(a) an employer has paid any puja tymus or other customary bonus to an employee; or

Adjustment

of customary

or interim

bonus

against

bonus pay-

able under

the Act.

(b) an employer has paid a part of the bonus payable under this Act to an employee before the date on which such bonus becomes payable,

then, the employer shall be entitled to deduct the amount of bonus so paid from the amount of bonus payable by him to the employee under this Act in respect of that accounting year and the employee shall be entitled to receive only the balance.

Deduction

of certain

amounts

from bonus

payable

under the

Act.

18. Where in any accounting year, an employee is found guilty of misconduct causing financial loss to the employer, then, it shall be lawful for the employer to deduct the amount of loss from the amount of bonus payable by him to the employee under this Act in respect of that accounting year only and the employee shall be entitled to receive the balance, if any.

19. All amounts payable to an employee by way of bonus under this Act shall be paid in cash by his employer—

Time-limit for payment of bonui.

(a.) where there is a dispute regarding payment of bonus pending before eny authority under section 22, within a month from the date on which the award becomes enforceable or the settlement comes into operation, in respect of such dispute;

(b) in any other case, within a period of eight months from che close of the accounting year:

Provided that the appropriate Government or such authority as the appropriate Government may specify in this behalf may, upon an application made to it by the employer and for sufficient reasons, by order, extend the said period of eight months to such further period or periods as it thinks fit; so, however, that the total period so extended shall not in any case exceed two years.

Application of Act to establish ments in public sec- tor in certain cases.

20. (1) If in any accounting year an establishment in public sec- tor sells any goods produced or manufactured by it or renders any services, in competition with an establishment in private sector, and the income from such sale or services or both is not less than twenty per cent, of the gross income of the establisJiment in public sector for that year, then, the provisions of this Act shall apply in relation to such establishment in public sector as they apply in relation to a like establishment in private sector.

(2) An establishment in public sector to which this Act applies shall continue to be governed by this Act notwith- standing that in any subsequent accounting year its income from the sale of goods produced or manufactured by it or from services ren- dered or from both, in competition with an establishment iri private sector, falls below twenty per cent, of its gross income for that ac- counting year.

21. Where any money is due to an employee by way of bonus from Recovery of bonus due from an employer.

his employer under a settlement or an. award or agreement, the employee himself or any other person authorised by him in writing in this behalf, or in the case of the death of the employee, his assignee or heirs may, without prejudice to any other mode of recovery, make an application to the appropriate Government for the recovery of the money due to him, and if the appropriate Government or such authority as the appropriate Government may specify in this behalf is satisfied that any money is so due, it shall isime a certificate for that amount to the Collector who shall pro- ceed to recover the same in the same manner as an arrear of land revenue:

Provided that every such application shall be made within one year from the date on which the money became due to the employee from the employer:

Provided further that any such application may be entertained after the expiry of the said period of one year, if the appropriate Government is satisfied that the applicant had sufficient cause for not making the application within the said period.

Explanation.—In this section and in sections 22, 23, 24 and 25, "employee'" includes a person who is entitled to the payment of bonus under this Act but who is no longer in employment.

Reference of disputes under the Act.

14 of 1947.

22. Where any dispute arises between an employer and his employees with respect to the bonus payable under this Act or with respect to the application of this Act to an establishment in public sector, then, such dispute shall be deemed to be an industrial dispute within the meaning of the Industrial Disputes Act, 1947, or of any corresponding law relating to investigation and settlement of indus- trial disputes in force in a State and the provisions of that Act or, as the case may be, such law, shall, saye as otherwise expressly pro- vided, apply accordingly.

14 of 1947.

Presumption about accn- racy of balance- sheet and profit and loBB account of corpora- tions and companies.

1 of 1956.

23. (1) Where, during the course of proceedings before any arbi- trator or Tribunal under the Industrial Disputes Act, 1947, or under any corresponding law relating to investigation and settlement of industrial disputes in force in a State (hereinafter in this seotion and in sections 24 and 25 referred to as the "said authority") to which any dispute of the nature specified in section 22 has been referred, the balance-sheet and the profit and loss account of an employer, being a corporation or a company (other than a banking company), duly audited by the Comptroller and Auditor-General of India or by auditors duly qualified to act as auditors of companies under sub-section (1) of section 226 of the Companies Act, 1956, are produced before it, then, the said authority may presume the state- ments and particulars contained in such balance-sheet and profit and loss account to be accurate and it shall not be necessary for the corporation or the company to prove the accuracy of such statements and particulars by the filing of an affidavit or by any other mode:

Provided that where the said authority is satisfied that the state- ments and particulars contained In the balance-sheet or the profit and loss account of the corporation or the company are not accurate, it may take such steps as it thinks necessary to find out the accuracy of such statements and particulars.

(2) When an application is made to the said authority by any trade union being a party to the dispute or where there is no trade union, by the employees being a party to the dis- pute, requiring any clarification relating to any item in the balance-sheet or the profit and loss account, it may, after satisfying itself that such clarification is necessary, by order, direct the corpora- tion or, as the case may be, the company, to furnish to the trade union or the employees such clarification within such time as may be specified in the direction and the corporation or, as the case may be, the company, shall comply with such direction.

Audited

accounts ~A

hanifing

companies

not to be

questioned.

24. (1) Where any dispute of the nature specified in section 22 between an employer, being a banking company, and its employees has been referred to the said authority under that section and during the course of proceedings the accounts of the banking company duly audited are produced before it, the said authority shall not permit any trade union or employees to question the correctness of such accounts, but the trade union or the employees may be permitted to obtain from the banking company such informa- tion as is necessary for verifying the amount of bonus due under this Act.

10 of 1 9 49 (2) Nothing contained in sub-section (1) shall enable the trade union or the employees to obtain any information which the banking company is not compelled to furnish under the provisions of section 34A of the Banking Companies Act, 1949.

Audit of

•accounts of

employers,

not being

corporations

or compan-

ies

I of 1956,

25. (1) Where any dispute of the nature specified In section 22 between an employer, not being a corporation or a company, and his employees has been referred to the said authority under that section and the accounts of such employer audited by any auditor duly qualified to act as auditor of companies under sub-section (1) of section 226 of the Companies Act, 1956, are produced before the said authority, the provisions of section 23, shall, so far as may be, apply to the accounts so audited.

(2) When the said authority finds that the accounts of such employer have not been audited by any such auditor and it is of opinion that an audit of the accounts of such employer is necessary for deciding the question referred to it, then, it may, by order, direct the employer to get his accounts audited within such time as may be specified in the direction or within such further time as it may allow by such auditor or auditors as It thinks fit and thereupon the employer shall comply with such direction.

(3) Where an employer fails to get the accounts audited under sub-section (2) the said authority may, without prejudice to the provisions of section 28, get the accounts audited by such auditor or auditors as it thinks fit.

(4) When the accounts arc audited under sub-section (2) or sub- section (3) the provisions of section 23 shall, so far as may be, apply to the accounts so audited.

(5) The expenses of, and incidental to, any audit under sub-section (3) (including the remuneration of the auditor or auditors) shall be determined by the said authority (which determination shall be final) and paid by the employer and in default of such payment shall be recoverable from the employer in the manner provided in section 21.

Maintcnonc of registers, records, etc. 26. Every employer shall prepare and maintain such registers, records and other documents in such form and in such manner as may be prescribed.

Inspectors.

27. (1) The appropriate Government may, by notification in the Official Gazette, appoint such persons as it thinks fit to be Inspectors for the purposes, of this Act and may define the limits within which they shall exercise jurisdiction.

(2) An Inspector appointed under sub-section (1) may, for the purpose of ascertaining whether any of the provisions of this Act has been complied with—

(a) require an employer to furnish such information as he may consider necessary;

(b) at any reasonable time and with such assistance, if any, as he thinks fit, enter any establishment or any premises connected therewith and require any one found in charge thereof to produce before him for examination any accounts, books, registers and other documents relating to the employment of persons or the payment of salary or wage or bonus in the establishment;

(c) examine with respect to any matter relevant to any of the purposes aforesaid, the employer, his agent or servant or any other person found in charge of the establishment or any premises connected therewith or any person whom the Inspector has reasonable cause to believe to be or to have been an employee in the establishment;

(d) make copies of, or take extracts from, any book, register or other document maintained in relation to the establishment;

(e) exercise such other powers as may be prescribed,

(3) Every Inspector shall be deemed to be a public servant within the meaning of the Indian Penal Code.

45 oi i8($o.

(4) Any person required to produce any accounts, book, register or other document or to give information by an Inspector under sub-section (1) shall be legally bound to do so.

(5) Nothing contained in this section shall enable an Inspector to require a banking company to furnish or disclose any statement or information or to produce, or give inspection of, any of its books of account or other documents, which a banking company cannot be compelled to furnish, disclose, produce or give inspection of, under the provisions of section 34A of the Banking Companies Act, 1949. io ol ¹⁹⁴⁹.

Penally. 28. If any person—

(a) contravenes any of the provisions of this Act or any rule made thereunder; or

(b) to whom a direction is given or a requisition is made under this Act fails to comply with the direction or requisition,

he shall be punishable with imprisonment for a term which may extend to six months, or with fine which may extend to one thousand rupees, or with both.

Offences by companies.

29. (1) If the person committing an offence under this Act is a company, every person who, at the time the offence was commit- ted, was in charge of, and was responsible to, the company for the conduct of business of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly:

Provided that nothing contained in this sub-section shall render any such person liable to any punishment if he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence.

(2) Notwithstanding anything contained in sub-section (J), where an offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to any neglect on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of that offence and shall be livable to be proceeded against and ounished accordingly.

Explanation.—For the purposes of this section,—

(a) "company" means any body corporate and includes a firm or other association of individuals; and

(b) "director", in relation to a firm, means a partner in tho firm.

Cognizanot

of offencM,

30. (1) No court shall take cognizance of any offence punishable under this Act, save on complaint made by or under the authority of the appropriate Government,

(2) No court inferior to that of a presidency magistrate or a magis- trate of the first class shall try any offence punishable under this Act

Protection

of action

taken undoi

tho Act

31. No suit, prosecution or other legal proceeding shall lie against the Government or any officer of the Government for anything which Is in good faith done or intended to be done in pursuance of this Act or any rule made thereunder.

32. Nothing in this Act shall apply to—

Act

not to

apply to

ccrtaix

classes

omployeei.

(i) employees employed by any insurer carrying on general insurance business and the employees employed by the Life Insurance Corporation of India;

(n) seamen as defined in clause (42) of section 3 of the Mer- 44 of 1958.

chant Shipping Act, 1958;

9 of 1948.

(in) employees registered or listed under any scheme made under the Dock Workers (Regulation of Employment) Act, 1948, and employed by registered or listed employers;

(iv) employees employed by an establishment engaged In any Industry carried on by or under the authority of any department of the Central Government or a State Government or a local authority;

(u) employees employed by—

(a) the Indian Red Cross Society or any other r"sW*u*ion of a like nature (including Its branches);

(b) universities and other educational, institutions;

(c) institutions (including hospitals, chambers of com- merce and social welfare institutions) established not for purposes of profit;

(vi) employees employed through contractors on building operations;

519 Q. of 1—9.

(vii) employees—

(a) who have entered before the 29th May, 1965, into any agreement or settlement with their employers for pay- ment of an annual bonus linked with production or pro- ductivity in lieu of bonus based on profits; or

(b) who have entered or may enter after that date into any agreement or settlement with their employers for payment of such annual bonus in lieu of the bonus payable under this Act,

for the period for which such agreement or settlement is in operation;

(viii) employees employed by the Reserve Bank of India; (ice) employees employed by—

(a) the Industrial Finance Corporation of India;

(5) any Financial Corporation established under section

63 of 1951.

3, or any Joint Financial Corporation established under sec- tion 3A, of the State Financial Corporations Act, 1951;

(c) the Deposit Insurance Corporation; (d) the Agricultural Refinance Corporation; (e) the Unit Trust of India; (f) the Industrial Development Bank of India; (g) any other financial institution (other than a bank- ing company), being an establishment in public sector, which the Central Government may, by notification in the Official Gazette, specify, having regard to—

(i) its capital structure;

(ii) its objectives and the nature of its activities; (Hi) the nature and extent of financial assistance or any concession given to it by the Government; end

(iv) any other relevant factor;

(x) employees employed by any establishment in public sec- tor, save as otherwise provided under this Act;

(xi) employees employed by inland water transport estab- lishments operating on routes passing through any other coun- try.

33. Where, immediately before the 29th May, 1965, any industrial dispute regarding payment of bonus relating to any accounting year, not being an accounting year earlier than the accoun- ting year ending on any day in the year 1962, was pending before the appropriate Government or before any Tribunal or other autho- rity under the Industrial Disputes Act, 1947, or under any corres- ¹⁴ of ¹⁹⁴⁷.

Act to apply 10 certain pending dispute! regarding payment of bonus.

ponding law relating to investigation and settlement of industrial disputes in a State, then, the bonus shall be payable in accordance with the provisions of this Act in relation to the accounting year to which the dispute relates and any subsequent accounting year, notwithstanding that in respect oi tiiat subsequent accounting year no such dispute was pending.

Explanation.—A dispute shall be deemed to be pending before the appropriate Government where no decision of that Government on any application made to it under the said Act or such correspon- ding law for reference of that dispute to adjudication has been made or where having received the report of the Conciliation Officer (by whatever designation known) under the said Act or law, the appro- priate Government has not passed any order refusing to make such reference.

34. (I) Save as otherwise provided in this section, the provisions of this Act srnll have effect notwithstanding anything inconsistent therewith contained in any other law for the time being in force or in the terms of any award, agreement, settlement or contract of service made before the 29th May, 1965.

Effect of laws and agree- ments in- consis. tent with the Act. (2) If in respect of any accounting year the total bonus payable to all the employees in any establishment under this Act is less than the total bonus paid or payable to all the employees in that establishment in respect of the base year under any award, agree- ment, settlement or contract of service, then, the employees in the establishment shall be paid bonus in respect of that accounting year as if the allocable surplus for that accounting year were an amount which bears the same ratio to the gross profits of the said account- Ing year as the total bonus paid or payable in respect of the base year bears to the gross profits of the base year:

Provided that nothing contained in this sub-section shall entitle any employee to be paid bonus exceeding twenty per cent, of the salary or wage earned by him during the accounting year:

Provided further that if in any accounting year the allocable sur- plus computed as aforesaid exceeds the amount of maximum bonus payable to the employees in the establishment under the first pro- viso, then, the provisions of section 15 shall, so far as may be, apply to such excess.

Explanation I.—For the purpose of this sub-section, the total bonus in respect of any accounting year shall be deemed to be less than the total bonus paid or payable in respect of the base year if the ratio of bonus payable in respect of the accounting year ,to the gross profits ol that year is less than the ratio of bonus paid or payable in respect of the base year to the gross profits of that year.

Explanation II.—In this sub-section,—

(a) "base year" means—

14 of 1947.

(i) in a case where immediately before the 29th May, 1965, any dispute of the nature specified in section 33 was pending before the appropriate Government or before any Tribunal or other authority under the Industrial Dis- putes Act, 1947, or under any corresponding law relating to investigation and settlement of industrial disputes in a State, the accounting year immediately preceding the accounting year to which the dispute relates;

(11) m any other case, the period of twelve months Im- mediately precading the accounting year in respect of which this Act becomes applicable to the establishment; (b) "gross profits" in relation to the base year or, as the case may be, to the accounting year, means gross profits as reduced by the direct taxes payable by the employer in respect of that year.

(3) Nothing contained In this Act shall be construed to pre- clude employees employed in any establishment or class of estab- lishments from entering into agreement with their employer for granting them an amount of bonus under a formula which is diffe- rent from that under this Act:

Provided that any such agreement whereby the employees re- linquish their right to receive the minimum bonus under section 10 shall be null and void in so far as it purports to deprive them of such right.

Savins. 35. Nothing contained in this Act shall be deemed to affect the provisions of the Coal Mines Provident Fund and Bonus Schemes Act, 1948, or of any scheme made thereunder.

46 of 1948.

Power of

•Mmption. 3b. If the appropriate Government, having regard to the financial position and other relevant circumstances of any establishment or class of establishments, is of opinion that it will not be in public interest to apply all or any of the provisions of this Act thereto, it may, by notification in the Official Gazette, exempt for such period as may be specified therein and subject to such conditions as it may think fit to impose, such establishment or class of establish- ments from all or any of the provisions of this Act.

Power to remove difficulties,

37. If any difficulty or doubt arises in giving effect to the provisions of this Act, the Central Government may, by order published In the Official Gazette, make such provision, not inconsistent with the purposes of this Act as appears to it to be necessary or expedient

for the removal of the difficulty or doubt; and the order of the Central Government, in such cases, shall be final.

38. (1) The Central Government may make rules for the purpose Power to make rules.

of carrying into effect the provisions of this Act.

(2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for—

(a) the authority for granting permission under the proviso to sub-clause (iii) of clause (1) of section 2;

(b) the preparation of registers, records and other documents and the form and manner in which such registers, records and documents may be maintained under section 26;

(c) the powers which may be exercised by an Inspector under clause (e) of sub-section (2) of section 27;

(d) any other matter which is to be, or may be, prescribed.

(3) Every rule made under this section shall be laid as 3oon as may be alter it is made, before each House of Parliament while it is in session for a total period of thirty days, which may be comprised in one session or in two successive sessions, and if before the expiry of the session in" which it is so laid or the session immediately following, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, es the case may be; so, however, that any such modification or annul- ment shall be without prejudice to the validity of anything previ- ously done under that rule.

14 of 1947.

Application

of certila

laws oot

barred.

39. Save as otherwise expressly provided, the provisions of this Act shall be in addition to and not in derogation of the Indus- trial Disputes Act, 1947, or any corresponding law relating to inves- tigation and settlement of industrial disputes in force in a State.

8 of 1965. 40. (2) The Payment of Bonus Ordinance, 1965, hereby repeal-

Repeal and saving. ed.

(2) Notwithstanding such repeal, anything done or any action taken under the said Ordinance shall be deemed to have been done or taken under this Act as if this Act had commenced on the 29th May, 1965.

THE FIRST SCHEDULE

[See section 4 (a)]

COMPUTATION OF GROSS PROFITS

Accounting Year ending

Particulars

Amount of Remarks main items

Item No.

Amount of

sub-items

Rs.

Rs.

• 1. Net Profit as shown in the Profit and Loss Account after making usual and necessary pro- visions.

Add back provision for ;

2.

(a) Bonus to employees.

(b) Depreciation.

(c) Development Rebate

See foot-note (1) Reserve.

See foot-note (1) (d) Any other reserves.

*s.

Total of Item No. 2 ]

Add back also :

3-

See foot-note (1) (a) Bonus paid to emplo- yees in respect of pre- vious accounting years

(b) Donations in excess of the amount admis- sible for income-tax.

*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 •hall be deducted from the profit.

Particulars

Remarks Item No.

Amount of

sub-items

Amount of main items

Rs.

Ra.

See foot-note (1) (c) Capital expenditure (other than capital expenditure on scien- tific 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).

(d) Any amount certified by the Reserve Bank of India in terms of sub-section (2) of section 34A of the Banking Companies Act, 1949,

10 of 1949.

(e) Losses of, or expen- diture relating to, any business situated outside India.

Total of Item No. 3

Rs.

4- Add also Income, profits or gains (if any) credited directly to published or disclosed reserves, other than—

CO capital receipts and capital profits (in- cluding profits on the sale of capital

534 RS—4

Remarks

Particulars

Amount of main items

Amount of

sub-items

Item No.

Ra.

Rs.

assets on which de- preciation has not been allowed for income-tax) ;

(") profits of, and re- ceipts relating to, any business situat- ed outside India ;

(MI) income of foreign banking companies from investments outside India.

Net total of Item No. 4 Rs.

Total of Item Nos. 1, 2, 3

5-

1

Rs.

and 4.

6. Deduct :

See foot-note (2) (a) Capital receipts and capital profits (other than profits on the sale of assets on which depreciation has been allowed for income-tax).

See foot-note (2) (b) Profits of, and re- ceipts relating to, any business situated outside India.

See foot-note (2) (c) Income of foreign banking companies from investments outside India.

(d) Expenditure or losses (if any) debited di- rectly to published or disclosed reserves, other than—

(1) capital expen- diture and capi- tal losses (other

Remarks

Particulars

Item No.

Amount of

sub-items

Amount of main Items

Rs.

Rs.

than losses on sale of capital assets on which depre- ciation has not been allowed for income-tax) ; (w) losses of any business situated outside India.

See foot-note (3) (") In the case of foreign banking com- panies proportionate administrative (over- head) expenses of Head Office alloca- ble to Indian busi- ness.

Set foot-note (2) (/) Refund of any excess direct tax paid for previous accounting yean and excess pro- vision, if any, of previous accounting years, relating to bonus, depreciation, or development re- bate, if written back.

See foot-note (2) (g) Subsidy, if any, re- ceived from Govern- ment or from :uiy body corporate es- tablished by any law for the time being in force.

Rs.

Total of Item No. 6

7-

Rs.

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

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 (aa per consolidated Profit "nd LQSS Account, adjusted as in Item No. 2 above only).

519 GIP Ex.—4.

THE SECOND SCHEDULE

[See section 4 (b)]

COMPUTATION OF GROSS PROFITS

Accounting Year ending

Particulars

Remarks

Amount of main Items

Item No.

Amount of

sub-items

Rs.

Rs.

i. Net Profit as per Profit and

Loss Account.

2, Add back provision for :

(a) Bonus to employees.

(b) Depreciation.

(c) Direct taxes, includ- ing the provision (if any) for previous accounting years.

te foot-note (1)

S,

(d) Development rebate/ Development allow- ance reserve.

ee foot-note (1)

5

(e) Any other reserves.

Total of Item No. 2 :

Els.

Add back also :

}ee foot-note (1)

i

(a) Bonus paid co emplo yees in respect of pre- vious accounting years

(b) Donations in excess of the amount admis- sible 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 dur- ing the accounting year.

Particulars

Remarks Item No.

Amount of

sub-items

Amount of main Items

Rs.

Rs.

St te foot-noie (1) (d) Capital expenditure (other than capital expenditure on scientific $•' research whichjis 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 agri- cultural income-tax).

(e) Losses of, or expen- diture relating to, any business situated outside India.

Total of Item No. 3 Rs.

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

(*') capital receipts and

capital profits (including profits on the sale of capi- tal assets on which depreciation has not been allowed for income-tax or agricultural income- tax);

(11) profits of, and re- ceipts relating to, any business situa- ted outside India;

Particulars

Remarks

Amount of main Items

Amount of

sub-items

Item No.

Rs.

Rs.

(tit) income of ^foreign concerns from investments outside India.

Net total of Item No. 4 Rs.

Total of Item Nos. 1, 2,

5- '

3 and 4,

Rs.

6. Deduct :

(a) Capital receipts and

* See foot-note (2)

i

capital profits (other than profits on the sale of assets on which depreciation has been allowed for income-tax or agri- cultural income-tax).

See foot-note (2) (b) Profits of, and receipts relating to, any business situated outside India.

See foot-nott (2) (c) Income of foreign concerns from invest- ments outside India.

(d) Expenditure or losses ^(if ^any) de- bited directly to reserves, other than—

1

(i) capital expendi- ture and ] capital losses (other,than losses on lalejof capital • assets on which ^depre- ciation ;j(has • |aot been fallowed jfor

Remarks Particulars

Amount of

sub-items

Amount of main Items

Item No.

Re.

Rs.

income-tax or agricultural in- come-tax) ;

(M) losses of any business situated outside India.

SV

to foot-note (3) (c) In the case of foreign concerns proportion- ate administrative (overhead) expenses of Head Office allo- cablc to Indian busi- ness.

St \e foot-note (21 (/) Refund of any direct tax paid for previous accounting years and excess provision, if any, of previous ac- counting years relat- ing to bonus, depre- ciation, taxation or development rebate or development al- lowance, if written back.

(g) Subsidy, if any, re- ceived from Govern- ment or from any body corporate es- tablished by any law for the time being in force.

Total of Item No.' 6 . Rs.

7-

Rs.

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

Foot-notes—

(1) Ifj and to the estent, 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 Loa" Account, adjusted as In Item No. 2 abov" only).

THE THIRD SCHEDULE

[See section 6 (d)]

Further sums to be deducted

Category of employer

Item No.

(3)

( i)

(*)

i. Company) other than a baniung company.

(x) The dividends payable on its preference share capital for the accounting year calculated at the actual rate at which such dividends are payable ;

(xx) 8-5 per cent, of its paid up equity share capital as at the com- mencement of the accounting year;

(MI) 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 ac- counting year :

1 of 1956.

Provided that where the employer is a foreign company within the mean- ing of section 591 of the Companies Actj 1956, the total amount to be deducted under this Item shall be 8-5 per cent, 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.

Ranking company

2.

(*') The dividends payable on its preference share capital for the accounting year calculated at the rate at which such dividends are payable ;

(tV) 7-5 per cent, of its paid up equity share capital as at the commencement of the accounting year;

Category of employer Further sums to be deducted Item No.

(2)

( 1)

(3)

(""") 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 accoun- ting year ;

(iv) any sum which, in respect of the accounting year, is transferred by it—

lO of 1949,

(a) to a reserve fund under sub- section (1) of section 17 of the Banking Companies Act, 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 :

I of i9sfl.

Provided that where the banking com- pany is a foreign company within the meaning of section 591 of the Companies Act, 1956, the amount to be deducted under this Item shall be the aggregate of—

(1) 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 pre- ference share capital as its total working funds in India bear to its total world working funds ;

(") 7"5 Per c e n t- 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 ;

(Hi) 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;

Category of employer Further sums to be deducted

Item No.

(3)

(0

GO

10 of 1949.

(tv) any sum which, in respect of the accounting year, is deposited by it with the Reserve Bank of India under sub-clause (it) of clause (b) of sub-section (2) of section 11 of the Banking Companies Act, 1949, not exceeding the amount required under the aforesaid provision to be so depositecj.

Corporation

3-

("') 8.^ per cent, of its paid up capital as at the commencement of the accounting year ;

(ft) 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.

Co-operative society

4.

(1) 8-5 per cent, of the capital invested by such society in its establish- ment as evidenced from its books of accounts at the commencement of the accounting year ;

("'i) 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.

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 XXIIA 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 :

Further sums to be deducted

Category of employer

Item No.

(2)

(1)

(3)

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 depredation 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 thejgestablishment shall also be deducted, but where the partnership agreement, whether oral or written, provides for the payment of re- muneration to any such partner, and—

(") the total remuneration payable to all sucrTpartners is less than the said 25 per cent., the amount payable, subject to a maximum of forty-eightXthousand rupees to each such partner ; or

(if) the total remuneration payable to all such partners" is higher than the said 25~per cent., such per- centage, or a sum calculated at the rate of forty-eight thousand rupees to each such partner, whichever is less,

shall be deducted under this proviso : Provided also that^where such em- ployer is an individual or a Hindu undivided family,— (f) an"amount equal to 25 per cent, of the gross profits derived by such employer from the establish- ment in respect of the accounting year after deducting depreciation in accordance with the provisions of clause (a) of section 6 ; or

(it) forty-eight thousand rupees,

whichever is less, by way' of re- muneration to such 'employer, shall also be deducted.

510 G, of 1—5,

Item No Category 01 employer Further sums to be deducted

(2)

(3)

( i)

6.

In addition to the sums deductible under any of the aforesaid Items, such sums as are required to be appropriated by the licensee in res- pect of the accounting year to a reserve under the Sixth Schedule to that Act shall also be deducted. 54 of 1948.

Any employer falling under Item No. i or Item No. 3 or Item No. 4 or Item No. 5 and being a licensee within the mean- ing of the Electricity Supply Act, 1948.

Explanation.—The expression "reserves" occurring in column (3) against Item Nos. 1 (Hi), 2 (Hi) 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;

(Hi) payment of dividends which have been declared,

out shall include—

(a) any amount, over and above the amount referred to in clause (i) of this Explanation, set apart as specific reserve for tha purpose of payment of any direct tax; 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.

THE FOURTH SCHEDULE

(See section 15)

In this Schedule, the total amount of bonus equal to four per cent, of the annual salary or wage payable to all the employees Is assumed to be Ra, 50,000. Accordingly, the maximum bonus to which all the employees

are entitled to be paid (twenty per cent, of the annual salary 01 wage of all the employees) would be Rs. 2,50,000.

/ear

Amount payable as bonus

Total set on or set off carried forward

Set on or set off of the year carried forward

Amount equal to sixty per cent, or sixty- seven per cent,, as the case may be, of available surplus allocable as bonus

(3)

(4)

GO

(5)

CO

Rs.

Rs.

Rs. of (year)

Rs.

1.

70,000

70,000

2.

6,35,000

2,50,000*

(2)

Nil Set on 2,50,000

Nil Set on 2,50,000*

2,20,000

2,50,000*

Nil

3.

Set on 2,20,000

(a)

(inclusive of 30,000 from year-

a)

2,50,000*

3"75"°°°

4-

Set on 1,25,000

Set on 2,20,000 1,25,000

1,40,000

2,50,000*

Nil

5-

00

(inclusive of ITO,O

from year-2)

Set on 1,10,000 1,25,000

8 8!

2,50,000*

3,10,000

6.

Setjon 60,000

Set on Nilf 1,25,000 60,000

(2) (4) (

1,00,000

2,50,000*

Nil Set on (6) 7-

(inclusive of

35,000

ar-4

1

1,25,000 from ye

and 25,000 from

year-6)

Set off

8.

Set off 1 15,000 15,000

50,000**

(inclusive of 35,00c

Nil (due to loss)

(8)

NOTES—

•Maximum. tThe balance of Rs. I,IO,OCO set on from year-2 lapsesi

**Minimum.

Year

Amount payable as bonus

Total set on or set off carried forward

Set on or set off of the year carried forward

Amount equal to sixty per cent, or sixty- seven per cent.. as the case may be, of available surplus allocable as bonus

(2)

(3)

(4)

(5)

CO

Rs.

Rs.

Rs. of (year)

Rs.

10,000

50,000**

 9-                                           Set  off    Set  off
                                                40,000      15,000      (8)
                                                            40,000      (9)
ro.                                            Nil          Nil

2,15,000

1,60,000

(after setting off

15,000 from year-8 and 40,000 from year-9)

•• Minimum,

R. C. S. SAEKAR,

Secy, to the Govt, of India.

PRINTED IN INDIA BY THE GENERAL MANAGER, GOVERNMENT OF INDIA PRESS,

MINTO ROAD, NEW DELHI AND PUBLISHED BY THE MANAGER OF PUBLICATIONS,

DELHI 1966.