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[THE FIRST SCHEDULE]
[See section 4(a)]
COMPUTATION OF GROSS PROFITS
Accounting year ending...........................
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Item No.
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Particulars
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Amount of sub-items
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Amount of main items
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Remarks
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Rs.
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Rs.
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Net-profit as shown in the Profit and loss Account after making usual and necessary provisions.
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2.
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Add back provision for :
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(a ) Bonus to employees.
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(b ) Depreciation.
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(c) Development Rebate Reserve.
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See footnote (1)
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(d ) Any other reserves.
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See footnote (1)
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Total of Item No.2
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Rs.
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3.
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Add back also:
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(a) Bonus paid to employees in respect of previous accounting year.
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See footnote (1)
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(b) The amount debited in respect of gratuity paid or payable to employees in excess of the aggregate of—
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(i) the amount, if any, paid to, or provided for payment to, an approved gratuity fund; and
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(ii) the amount actually paid to employees on their retirement or on termination of their employment for any reason.
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(c) Donations in excess of the amount admissible for income-tax.
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(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).
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See footnote (1)
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(e) Any amount certified by the Reserve Bank of India in terms of sub-section (2) of section 34A of the Banking Regulation Act, 1949 (10 of 1949).
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(f) Losses of, or expenditure relating to, any business situated outside India.
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Total of Item No.3
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Rs.
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4.
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Add also income, profits or gains (if any) credited directly to published or disclosed reserves, other than—
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(i) capital receipts and capital profits (including profits on the sale of capital assets on which depreciation has not been allowed for income-tax);
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(ii) profits of, and receipts relating to, any business situated outside India;
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(iii) income of foreign banking companies from investments outside India.
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Net total of Item No. 4
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Rs.
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5.
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Total of Item Nos. 1, 2, 3 and 4
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Rs.
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6.
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Deduct:
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(a) Capital receipts and capital profits (other than profits on the sale of assets on which depreciation has been allowed for income-tax).
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See footnote (2)
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(b) Profits of, and receipts relating to, any business situated outside India.
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See footnote (2)
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(c) Income of foreign banking companies from investments outside India.
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See footnote (2)
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(d) Expenditure or losses (if any) debited directly to published or disclosed reserves, other than—
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(i) capital expenditure and capital losses (other than losses on sale of capital assets on which depreciation has not been allowed for income-tax);
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(ii) losses of any business situated outside India.
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(e) In the case of foreign banking companies proportionate administrative (overhead) expenses of Head office allocable to Indian business.
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See footnote (3)
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(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 devel-opment rebate, if written back.
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See footnote (2)
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(g) Cash subsidy, if any, given by the Government or by any 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 purposes and the proceeds of which are reserved for such purposes.
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See footnote (2)
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Total of Item No. 6
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Rs.
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7.
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Gross profits for purposes of bonus (Item No. 5 minus Item No. 6)
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Rs.
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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.
Footnotes—
(1) If, and to the extent, charged to Profits 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).
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