Gross profits for bonus computation require detailed additions and deductions from net profit under the prescribed labour law format. Computation of gross profits for bonus purposes begins with net profit as per the profit and loss account and then adds back specified provisions, reserves, prior-year bonus, excess gratuity-related amounts, inadmissible donations, annuity payments, capital expenditure, capital losses, and losses or expenditure relating to business outside India. It also adds income, profits or gains credited directly to reserves, subject to exclusions for capital receipts, foreign business items, and foreign concerns' investment income, before deducting specified receipts, reserve debits, allocable head office overheads, written-back tax refunds and excess provisions, and eligible cash subsidies.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Gross profits for bonus computation require detailed additions and deductions from net profit under the prescribed labour law format.
Computation of gross profits for bonus purposes begins with net profit as per the profit and loss account and then adds back specified provisions, reserves, prior-year bonus, excess gratuity-related amounts, inadmissible donations, annuity payments, capital expenditure, capital losses, and losses or expenditure relating to business outside India. It also adds income, profits or gains credited directly to reserves, subject to exclusions for capital receipts, foreign business items, and foreign concerns' investment income, before deducting specified receipts, reserve debits, allocable head office overheads, written-back tax refunds and excess provisions, and eligible cash subsidies.
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