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.

[DR.MARIAPPAN GOVINDARAJAN]

Since your case requires in depth analysis please approach a professional.

AI Summary

Allocable surplus calculation queries over treatment of capital gains, unabsorbed depreciation, dividend assumption and set offs require professional advice. Queries concern computation of allocable surplus under the Payment of Bonus Act: whether capital gains are excluded from gross profit only when tax depreciation is disallowed; whether special incomes like long term capital gains are deductible from available surplus; the treatment of unabsorbed depreciation and losses and implications of having paid minimum alternative tax; whether a 67% rate applies when no dividend is proposed; and whether amount set on/set off is unnecessary for the first six years. The document records only advice to seek professional analysis.