Bonus register for Allocable Surplus

[CABIJENDERKUMAR BANSAL]

Dear Respected members,

Greetings! Having following queries in respect of Bonus register for Allocable Surplus as per payment of Bonus Act:--

1) For Finding gross profit and to deduct Capital Gain on sales of Assets as per Schedule 2, whether only those Assets are to be considered where Depreciation in Income TAx Act is not allowed..

2) For Finding Available Surplus, refer Sec 7 read with Sec 6, no account to be given to Unabsorbed depreciation and losses.. Whether if we have paid MAT, then too, we have to recalculate the Income TAx by avoiding Unabsorbed depreciation and Loss.

3) Also for Sec 6, For Income Tax, if we have Special Income like Long term capital gain, then same also needs to be deducted for finding Available Surplus.

4) As per Sec 2(4), for Allocable Surplus, if we have no Dividend proposed, then whether 67% rate to be used.

5) For Amount Set On/Set Off, as per understanding from Sec 16, no need for such amount for First 6 years. Please confirm.

Thanks in anticipation of doing needful.

AI Summary

Queries on Calculating Allocable Surplus Under Payment of Bonus Act: Depreciation, Capital Gains, Dividend Rates, and Set-On/Off Rules A participant in a discussion forum raised queries regarding the calculation of allocable surplus under the Payment of Bonus Act. The questions focused on whether certain assets should be considered when depreciation is not allowed, the treatment of unabsorbed depreciation and losses when calculating income tax, the deduction of special income like long-term capital gains, the rate to be used if no dividend is proposed, and the necessity of setting on/off amounts in the first six years. A respondent advised seeking professional assistance for an in-depth analysis.