Direct tax payable by the employer is calculated excluding loss carryforwards, depreciation arrears and certain rebates. Section 35 prescribes that the direct tax payable by the employer for an accounting year is calculated at rates applicable to the employer's income while excluding prior-year loss carryforwards and arrears of depreciation. Exempt income of certain religious or charitable institutions is to be treated as income of a public-interest company. Individuals and Hindu undivided families are taxed on the basis that establishment income is their only income. Export-profit rebates and rebates other than specified development or investment allowances or credits for industry development are disregarded.