Page 158 - DCOM207_LABOUR_LAWS

Unit 9: Payment of Bonus Act, 1965

7. 1,00,000 2,50,000* Nil Set on 35,000 (6) Notes
(Inclusive of
1,25,000 from
year-4 and 25,000
from year-6)
8. Nil 1,04,167** Set off 69,167 Set off 69,167 (8)
(due to loss) (inclusive of
35,000 from
year-6)
9. 10,000 1,04,167*** Set off 94,167 Set off 69,167 (8)
94, 1267 (9)

10. 2,15,000 1,04,167** (after Nil Set off 52,501 (9)
setting off
69, 167 from
year-8 and 41,666
from year-9)
* Maximum
** Minimum
***The balance of ` 1,10,000 set on from year-2 lapses.

Task State the deductions which are allowed under the Third Schedule of the
Payment of Bonus Act, 1965 for the purpose of computation of ‘Available surplus’ in the
case of a Banking Company, which is not a Foreign Company.

Self Assessment

State whether the following statements are true or false:
10. There are few differences in computation of gross profits in case of banking company and
other than banking companies.
11. Set off is the excess allocable surplus remain after paying the maximum bonus of 20% on
the wage or salary of the employee.
12. When there are no profits (available surplus or allocable surplus) or the amount falls short
or deficiency for payment of minimum bonus to employees 8.33%, such deficiency amount
should be adjusted to the current accounting year from the set-on amount which was
carried forward in case of excess allocable surplus in the previous year.

9.5 Powers of Inspectors, and Offences and Penalties [Sec. 27]

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.

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