Page 323 - DMGT516_LABOUR_LEGISLATIONS

Labour Legislations

Notes Calculation of Direct Tax Payable by the Employer

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 an individual or a Hindu individual 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 (other than development rebate or investment
allowance or development allowance) or credit or relief or deduction (not herein 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.

13.3 Eligibility for Bonus

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.
Disqualification for Bonus

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.

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