to ti-le pjyr,~1=nt lf qlnjs ',seeen[) a~~ff\r::metlt) bill, 1~,80 era belts intrvr'ucl"d in t,ok sahha 7 1 page 3, line 12,-f(or " s p c t 0 5 n" "section" 2 page 4, in the marginal headirk to claus~ 15,-aft~ "section" insert -27" 3 pa9c 5, l~ne 1,-fur "34a" re ad " 3la " -4 page 5, in the ~arginal heading to clause 17,-for "ameno-" rea~_ "amendment" 5, pa<;le 0, line 8,-for "an" ~ ,0 ann" 6 p'age 8, against ~ine 4~;-for the marginal cit<'ltion "10 of 194('" "1 l fl 7, paae 9,  ine 27,-ft "?(l'l"i)'," t l~ -11}~ " and" 8 paoe 14,' line 7 frem bottom,-oj - for " of" !!?d " or" 9 paqe 18,-6~ top,-p_e:fo_r~ line-l,'inseii-"the seccnd ,schf:f'oule" np,' ~)e uu; november 2~z 1980 - a"9tafiayana"t3, l/jr2 tsaka) ,  bill no 203 of 1980 the payment of bonus (second amendment) bill, igbo a billjurther to amend· tht payment or bonus act, 1965' be it enacted by parliament in the thirty-first year of the republico! india· as follows:-1 (1) this act may be called the payment of bonus (second amendment) act, 1980 short titl!! and commen cement s (2) it shall be deemed to have come into force on the 21st da~ of august, 1980, except section 11 which shall come into force at once 21 of 1965 2: iii section 2 of the payment of bonus act, 1965 (hereinafter j ref~rr~d to as the principal act) ,--amen  , mentgl,: section 2 (a): in'sl1bclause: (a)' 'of cla'use (4)', after the· words "being a 10 - 'compa!1'y", the" braeketl and words , (other th811 a bankirigl'com pfty)!' shall bff'iilsei'tedj (b) in clause (8), after the figures "1970,", the words, figures and brat1kets ~'atiycorrespmldlngnew bankeonstifluted· undezlsection 3 of~ the ::bailldngr cdmpantes (acquigition l - and tl<allsfer' of under 40 of 1980 15 j takitjlgs-) act, 198o,'! sb8il be insetted: !to for i ~ctiol'l ~ ot1 the principal act, the following section shall be aubstituted, namely:-&mput&-tionof "4 ,the gross profits derived by an employer from an establishment in respect of any aecounting year shall-~08i proftts, (a) in the case of a banking company, be calculated in the s manner specified in the first schedule; (b) in any other case, be calculated in the manner specified in the second schedule  4 in section 6 of the principal act,-amendmentof iection 6 (a) in clause (b), for tht words "development rebate or 10 development allowance", the words "development rebate or investment allowance or development allowance" shall be substituted; (b) in cla'use (d), for the words "second schedule", the words "third sehedule" shall be substituted amendmentof aection 7 5 in section 7 of the principal act, in clause (e), for the brackets and is words" (other than development rebate or development allowance) ", the brackets and words" (other than develcqment rebate or investment allowance or development allowance)'" shall be substituted 6 for section 10 of the principal act, the following sections shall be substituted, namely: -20 subltitutionof new sec_ tions for lection 10 '10 subject to the other provisions of this act, every employer shall be bound to pay to every ernployee in resped of the payment of minimum bonus account~ng year commencing on any day in the year 1979 and in respect of every subsequent accounting year, a minimum bonus which shall be 833 per cent nf the salary or wage earned by the 2s employee during the accounting year or one hundred rupees, whichever is higher, whether or not the employer has any allocable surplus in the accounting year: provided that where an employee has not completed fifteen years of age at the beginning of the accounting year, the provisions 30 of this section shall have effect in relation to such employee as if for the words "one hundred rupees", the words "sixty rupees'" were substituted payment of maximujll bonus 11 (1) where in respect of any accounting year referred to in section 10, the allocable surplus exceeds the amount of minimum 3s bonus payable to the employees under that section, the employer shall, in lieu of such minimum bonus, be bound to pay to every employ~ in respect of that accounting year bonus which shall be an amqunt in proportion to the salary or wage earned y the employee during the accounting year subject to a maximum of twenty 40 per cent of such salary or wage (2) in c()ldputing the allocable surplus under tbj8 aeetton the amount set on or the amount set off under the proyiilons of section 15 shall be taken into account in aocorctanee with the provisions of that section' ~ in ~tion 12 of the principal act, for the words and figures "under sectlon 10 , the words and figures "under section 10 or as the case mily be, under section 11," shall be sub~tituted ' amendmentot section 12 8 for section 13 of the principal act, the following section shall be s substituted, namely:-substitution ot new sectionfor section 13 10 proportionate reduction in bonus in certain cues "13 where an employee ha~ not worked for all the working days in an accounting year, the minimum bonus of one hundred rupees or, as the case may be, of sixty rupees, if such bonus is higher than 833 per cent of his salary or wage for the daye he has worked in that accounting year, shall be proportionately reduced!' 9 for sectoin 15 of the r,>rincipal act, the following section shall be substitu_ substituted, namely: -tion ot new action tor section 15 | seton     ||-----------|| set       || off       || 01        || allocable || surplus  |20 "15 (1) where for any accounting year the allocable surplus exceeds the amount of maxim'um bonus payable to the employees in the establishment under section 11, then, the excess shall, subject to a limit of twenty per cent of the total salary or wage of the employees employed in the establishment in that accounting year, be carried forward for being set on in the succeeding accounting year and so on up to and incl'llsive of the fourth accounting year to be utilised for the purpose 'jf payment of bonus in the manner illustrated in the fourth schedule 25 30 (2) where for any accounting year, there is no available surplus or the allocable surplus in respect of that year falls short of the amount of minimum bonus payable to the employees in the establishment under section 10, and there is no amount or sufficient amount carried forward and set on under sub-section (1) which could be utilised for the purpose of payment of the minimum bonus, then, such minimum amount or the deficiency, as the case may be, shall be carried forward for being set off in the succeeding accounting year and so on up to and inclusive of the fourth accounting year in the manner illustrated in the fourth schedule  3s(3) the principl~ of set on and set off as illustrated in th~ fourth schedule shall apply tt) all other cases not covered by subsection (1) or sub-section (2) for the purpose of payment of bonus under this act (4) where in any accounting year any amount has been carried forward and set on or set off under this section, then, in calculating bonus for the succeedintz accf)unting year, the amount of set on or set off carried forward from the earliest accounting year shall first be taken into account" ,,·:te2in,ction··16·:of the ·rpfincqalaet, in sub+~@,~tbhlfor the amendment:lof ·~'~16 imopdb~'':elur<i'sqbedule',i,at lic>th ;be pmoes' where!", ~41'; tlltl,~ "fourth schedule" shall be bstitu~ed j' ' 1 til;' section 20 of the ];k"incipal aet shall be reilwnbesedas alb-eection (1) thereof, and after sub-section (1) as so rerwmbend; 1ile:'fqhmrin~ s sub-section shall be inserted, namely:- (2) save as otherwise provided in sub-section (1), nothing in this act shall apply to the employees employed by any establishment in ,?ublic sector" it !;~n~ ' lz h!l,seeuon21 of the principal act, in the ~lanation, ,for the 10 ~lqn;21 'fwql'd8,~andj~gures'''sfl6ti0q8 22, 23,and 25", the wol'cis and figures , j'sedions,!2,23, 24 and 25"' shall be slolbstituted amendment of sed:ion-23 1 ~ -   13 in section 23 of the principal act, in sub-section (1) ,lior,ij1e word and figures "section 25", the words and figures "sections 24 and 25" shall ,be: &®itit'uted is 14 after section 23 of the principal act, the following section ,shall be inserted, namely:-"  ~ of new ,'  0-24 audited  iiicilo1jdts of tiiiaiiridg coaapiiaies not to be questioned "24 (1) where any dispute of the nature specified in section 22 between an employer, being a banking company, anli its employees ,bas- ,been re!ferred to the silin authority under that sectioft aad ,during 20 the course of nroceedings the account~ of the banking ·ccmpany duly audited are produced before it,' the said auth(}rity shall not permit any trade union or employees to question the correctness; of such accounts, but ihe trade union or the employees moay be permitted 'jto'obtainfrom the banking oompany suchinf01'matidn :u-is nece9sary 25 tlor ,verifying the amount of bo'lusdue 'under this, act (2) nothing contained in sub-section (1) shall enable the trade union or the employees to obtain any information which the banking company is not compelled to furnish under the provisions of section 34a of tbe ~anking regulation act, 1949", 10 of 1949 3') ,15 in section 27 of the principal act, after 8ub·section fehowitlg sub-section shall be inserted, namely:-(4) , the amendment of section  (5) ndthing contained in this section shall enable an i~pector to require a banking company to furnish or disclose any,bt~tement or infocnation or to produce, or give inspection of, 'any of its books 35 of account or -other documents, which a banking company cannot be compel1ed to furnish, disclose, produce or give inspection of, undfl' ,the' provisions of section34a of thebankini: itegulation act, 1'49,", 10 of 1949 amendment of section 30 16 in section 30 of the princiqal act, in sub-seotidn ~),, ,,~r thi 41) words "appropriate government", the words and brackets "or an officer '-ofith!rtgovemment(not below the rank ofa <regiolilit tabour com-'f'miseionerinthe case of an offieer otthe: central govemmedt ·and not :,behjw'''the rank of a labour commissioner inthe'caae' ofl'snulter of  '1hel fstate ,government), specially, autbomi in' '~thit jhehalf t, tha\ 45 government" shall be inserted amendof section 31a  17 in section 34a of the principal act, 'in the proviso, for the words hf'rovtded ~t", - the wbt~! "provided further that" shau'be 'substituted and before the' proviso as so amended, the following proviso shall ; be inserted, namely:-s "provided that any such agreement m' "matt, whereby the employees relinquish their right to receive, ',tbe,am:iizpwd bonus under section 10 shall be null and void in so far sait··purports to deprive them of such right" 18 in section 32 of the (jrincipal act,-10 (a) clause (vii) shall be omitted; amendment of section 32 (b) in dauce (ix) ,-(i) sub-cla'use (ff) shall be emitted; 15 (ii) in sub-clause (g), after the words "'filtmlcla! institution", the brackets and words" (other than a banking company)" shall be inserted 19 in the principal act,-amend ment of the first schedule (a) the first schedule shall be remunbered  aa·the:seeond"schedule and in that schedule as so renumbered-(i) for the brackets, words;md fiiwe" {see section 4)" 20 the brackets, words, figure and letter "'[see seetion ~b)]''' shall be substituted; (ii) in the second column, against item no 2,·for the entry "(d) development rebate/development allowance reserve" the entry "(d) development rebate/investment allowance/develop-25 ment allowance reserve" shall be l9ubstitllted; (b) before that schedule as so renumbered the following schedule shall be 'inserted, namely:- 'the first schedule [see section 4(a)] comptrtation of gross profits accounting year ending   | amount                | of            | amol1nt    ||-----------------------|---------------|------------|| or                    |               |            || r~marka               |               |            || !ub-itel1lll          | main          | items      ||                      |               |            || _--__--__           |               |            ||                     |               |            || _---                  |               |            || -__---------         |               |            || it",m                 |               |            || no                   |               |            || particulars           |               |            || ------------          |               |            || rs                   |               |            || rs                   |               |            || 3'i -                 |               |            || r                    |               |            || ne                    |               |            || l                     |               |            || profit                |               |            || as                    |               |            || shown in              | th",          | profit     ||                      |               |            || ~nd                   |               |            || los                 |               |            || account aft",r making |               |            || urlial                | and           |            || necessary!provhlion~ |               |            || 2                    |               |            || add                   | hqt:k         |            || provision for:        |               |            || (a)                   |               |            || bonus to              |               |            || employees            |               |            || 4                     |               |            || 0                     |               |            || (6)                   | depreciation |            || (c)                   |               |            || development           | rebate        | reserve   || (d)                   |               |            || any                   | other         | reserves  || r                     | •            |            || sf,                   | foot-         |            || note                  | (/)           |            || s                   |               |            || foot                 |               |            || note                  | (/)           |            || 45                    |               |            || total                 | of            | item       || ii                    |               |            || 3                    | add           | hqt:k      || allo:                 |               |            || (a)                   |               |            || bonu                |               |            || paid                  |               |            || to                   | employ_      |            || in                    |               |            || respect               |               |            || of                    | preyloul      | _untlng    || si!i'                 |               |            || foot·                 |               |            || years                | _____________ |            || :~                    |               |            |--;whert'! the profit subject to w:cation is mown in the ~fit and lolli acc~nt ilild the   d provision rna e fior taxes on income is shown, the actual provision for taxes on mcome ,hall be deducted from the profit | rema                         |                         ||-------------------------------|-------------------------|| amount                        |                         || fa                            |                         || amount                        |                         || of                            |                         || lub-i lema                    | maio                    || itemi                         |                         || item                          |                         || no                           |                         || ri                           |                         || ri                           |                         || 5                             |                         || (6)                           | tbealdoullt             || ill                           |                         || a-                           |                         || ~t                            |                         || of                            | gratuity                || or                            |                         || pay-                          |                         || able                          |                         || to                            |                         || employee                     |                         || in                            |                         || e!xct'ii                      |                         || oy(                           |                         || tbc                           |                         || anreptc                       |                         || of-                           |                         || 10                            |                         || (i)                           |                         || the amount,                   |                         || i                             |                         || r                             |                         || any                           | paid to,                || or                            |                         || provided for                  |                         || payment                       |                         || to,                           |                         || an                            | approved gratuity fund; || and                           |                         || (ii)                          |                         || the                           | amount                  || paid                          |                         || to employees                  | on                      || :tbdr                         |                         || re-                           |                         || tirement                      | or                      || on                            |                         || termination                   |                         || of                            |                         || their                         |                         || ompioymc:at                   |                         || for                           |                         || any                           |                         || reuon                        |                         || (e)                           |                         || donations                     | in                      || of                            |                         || the                           |                         || amount                        | admissible              || lor income-                   |                         || tax                          |                         || s                            |                         || foot-                         | 20                      || note                          | ()                     || (d)                           |                         || capital                       | expenditure             || than                          |                         || capital expc:nditure          | on                      || ilcientific                   | raearch                 || which                         |                         || it                            |                         || allowed                       |                         || u                             |                         || a deduction                   | under                   || any                           |                         || law                           |                         || cor                           |                         || the                           | time                    || being                         |                         || in                            |                         || force:                        |                         || relating to direct            |                         || taxei)                        |                         || and                           | capital                 || than                          |                         || loucs on sale                 |                         || of                            | capital assets          || on                            | which                   || deprttiation                  |                         || ilaa                          |                         || been                          |                         || allowed for income-tax)      |                         || 30                            |                         || () any amount ccctified      |                         || by                            |                         || the                           |                         || reser\'e bank                 |                         || of                            | india                   || of                            | sub-section             || of                            |                         || section                       |                         || 30                           |                         || of                            |                         || the banking regulation        |                         || act,                          |                         || 194-9                        |                         || 1001'949                      |                         || 35                            |                         || (f)                           |                         || losiics                       | of,                     || re-                           |                         || lating to,                    | any                     || outside india                |                         || total                         | of                      || r •                          |                         ||                            | add                     || also                          |                         || income, profits               |                         || or                            |                         || gains                         |                         || (if                           |                         || any) credited direcdy to pub- |                         || liabed                        |                         || or                            | diiclosed               || rc::servts                   |                         || "tju,                         |                         || tlatm-                        |                         || 45                            |                         || (i)                           | capital receipts        || profits (including profits on |                         || the sale                      |                         || of                            | capital                 || aueta                         |                         || on                            |                         || which                         |                         || depreciation                  |                         || has                           |                         || not                           |                         || been                          |                         || allowed                       |                         || for                           |                         || income-tax);                  |                         || (ii)                          |                         || profits                       |                         || fa,                           |                         || and                           | receipts re1at-,        || ina"                          |                         || to,                           | any                     || busincli                      |                         || aituated                      |                         || outaide                       |                         || india;                        |                         || so                            |                         || (iii)                         |                         || income                        |                         || of                            |                         || fo~                           |                         || bankidc                       |                         || companies from mvestments     |                         || outside india                |                         || ri                           |                         || net                           | total                   || of                            |                         || item                          | no                      || ri                           |                         || 5 total                      |                         || of                            |                         || item                          | noi                    || i,                            |                         || i,                            |                         || 3                             | and                     || ss                            |                         |item no amount or bouilt 01 lub-itemi main i_ s 6 lhtki : () capital receipts and capital pro&ts (other than profits ofr the sale of uaets on which depreeiauon baa been allowed for income-tax) 10 sit footnote (q) (6) profits oc, and receipts relating to, any buaineu lituated outside india sfootnote (a) (e) income oc foreign banking coidp!liliea from investments outside india is (d) expenditure or loaes (ir an~ debited directly to publiah or diicbed raervea, uw dim-20 (i) capital apenditure and capital biea (other than biea on sale of capital aaets on which depreciation has not been allowed for  idcome-tax); 2s (ii) loaea oc any buaineu lituated outside india s" footnote (3) 30 (,) in the case of foreip banking companiea proportionate adminutrative (overhead) expemes of head office allocable to indian businea s" foot-dote (ii) 35 (f) refund oc any exccii direct tax paid for previoui accounting yean and excea provi-1i0d, if any, of previoui &c-couatinl yean, relaq to bodui depreciation, or deve-10pmait ~bate, if written back !1m footnote (a) 40 45 (,) cub lublidy if any, given by the government or by any body :to:r&te eatabliabed by any law or the time being in force 01' by any other &fcdcy throuib b~ irtl, whether given direc or throuih any &lcdj for iped-so total alltem no 6 cm- profiia for puapcjici of boaui 7· (item no 5 milaul item no6) eij'>lantifioti--:lif sub,;ltem (b)"' of'item 3;--f4applovect'-gnrtutty ,fund" h  ~tbe- same meanins~~iiled to it in clause (5) of s~~~on 2 of the income-tax ~, " foot-mtes-(l)if, and to the extent, charged to prom· and ,<loeb" !aabun\', (2) if, and to the extent, credited to prl!iftt ilnd· lcss··alcmjgiujlt  , , (3) in the proportion of indian gross profit (item no7) to toal world gross profit (as per consolidated profit an loss ",ccount adjusted all in item no2 above only)' ':" 20 in the princi,al act, the second schedule shall be renumbered as io thttthim schedule and in that schedule a: so,renumbered,-amllll!· mento'f the second schedule (a) in column (2), against item no1, for the wordl "cumpany", the words "company, other than a banking company" shall be sub· stituted; (b) after item no 1 and the entriesrel'b'ttngtht!l"elte; the '·follow· 15 ing item and entries shall be inserted, namely:----' ----------- -------------(i) the dividendi ~ble on its preference lob", capital (or the accounting year calculated 20 at the rate at which such dividendi are payable; , (ii) 7spc:i'get1lof its paid lip equity share capital as at the commencement ofthe account- 25 ing yeu; (iii) 5 per cent', or its reserves shown in ita balance-sheet 85 at the commeacement of the accounting year, including any 3) profiu carried forward from the previow ac;cowlting year; (ip) anyluul whidl in respect o( aho,~countill8year is transferreq, by i"'-3 s, (,  , , to a resetw" f\!ed under ~ (~dllection 17 oi"' banlmg'egulation 10 of 1949 act, 1949; or' - (b) to any reserves in india in 40 , pur&\iiiiicf: of aaydia!otion or advi« pel)' by the , resuvc ~ju: d idia,  10 of 1949 s'o~ ~'-d hir-!'~ , 'provid~ 'tb~·t wh~'~ banking ~::~~ ~:eu~;~f lecti~ 591' ot' ' tho 'co'mpanies act, igs!'l;, the ambwtl to be dedudeb uhtmhhisttem shall be the aggregate of-(i) the dividend payable to its prcneel  oiri for the accounting year at the rate at which iuch dividends s5 ,ara~ble'lhl<_bmowat  bart1 tile 4&irle-r"-eportion to its total preference share capital as its total workirig fundi in india 'bear to its total world working 60 fundaj as bean the aame propgrrion to ita total paid lip equity share capital as its total worldng funds in india bear to ita total world working wnda; | (iii)         | 5      ||---------------|---------|| per           |         || cent_         |         || of            |         || such          |         || amount        |         || as            | bean    || the           | aame;   || tion          | to      || ita           |         || total         |         || disclolcd     |         || reserves      |         || as            |         || ita           |         || total         | working || fundi         |         || in            |         || india         |         || bear          |         || to            |         || ita           |         || total         |         || world working |         || funds;        |         |10 of 1949 any iwll which, in reapect don act, i 190f9, not exceeding the ,amount required under the aforeaaid t'0vijion to be 10 depoaited ; 25 (c) in the explanation, for the agure, brackets and word "1 (iii) and 3 (ft) ", the figures, brackets and word "1 (iii), 2 (iii) 3 (ii)" shall be substituted 21, for the third schedule to the prmcipal act, the following schedule shall be substituted, namely:- "the fourth schedule30  (see sections is and 16)subtitution of new schedule (·for the third schedule, in this schedule, the total amount of bonus equal to 833 per cent of the annual salary or wage payable to all the employees is assumed to be ri 1,04,167 accordingly, the maximum bonus to which all the emplo-35 ,ees are entitled to be paid (twenty per cen~ of the annual salary or w4lge of all the employees) would be 1u 2,50,000  -----_-,,-" , year amount equal amount set on or set total set to sixty per payable off of the on or set cent or sixtyas bonus lcea&'lcarried off carried 40 seven per cent, orward forwara  the case may be, of available surplus allocable  bonus (5) ' rs r • ,; f rs rs of (year)" :  ,'  ~::,  i 1,04,167 1,04,167 •• : nil nil « 6,35,000 2,50,000: set on set on ~ )i' r ~  fl,!)o,ooo· fl ,50 ,ooo (2) (i) (2) (3) (4) (5) bta" rs rs rs of (year) 3 2;20,000 2,50,000 nil set on ( inclusive of 2,20,000 (2 ) 30,000 from year-2) 5  \ 4 37,~~~ 2,50,000 set on set on j ,25,000 2,20,000 (2) ~i 1,25,000 (4) 5 i ,4(),ooo':) 25°,000· nil set on "1," ,,',j! (ihchlsive of 1,10,000 (2) 10 1,10,000 from 1,25,000 (4) " year-a) 6 " 3,io,opck 2,50,000 - set on set on 7 " 60,000 nilt (2) 1,2,5,000 4) 15 6 '" (6)  ~~°9t ,  ','" 1,00,000 2,5°,000· nil set fwtl' ' (inclusive of 35,000 ('6) i ,~,op,q jro1i\ ", ~ : ye  ~4'~nd· t~5,obo ' " ' from year-6) ',!')" ~v ' ,  !i 20  i j 8 i ;04,167t , \ ' ~  set off set off , n, j' nil (due to loss) 6mj67 ' 69, 167 (8) -,;'  ·(in~l",i~ of , ; 35,000 from year-6) t f_t" >');' 25 " :j i " i -' ' 10,000 9  st!t • ff,~~,;",·~off '~ ,~:: 91lt,6,! ~&1i\" ,·,(8}"h "; : ~4th4i,i : ~ , " (9);1 (;v 10 2,15,000 , 1 om 167' nil  ,,,)  set off (9)~o :1 'i" " 5~!;o~i';/' (af~r settmg o/ff," 6g,'167 from yeal'i4, and 1'1,666 fr<mw  " 'yea~) of , r~, i '>1", ~_""'t-_  ~ji, ;; ji {'t ~ l' " ,f, tthe balance of rs • l ,j 0,000 set onfromyear-lilla~<;8 • ( ! ~  ~ z~\,~~)(the ,f;ayment of j30nus (amen~went) ordin~pce, 1980 is hereby repealed   ': ,,~ i, ~ , 1 ~  1 - ' ,~, - (2) notwithstanding such repeal, anythirig done or any action taken under the pridcipal act, 88 -amended"icycl,·the said e,q,;,il)ance shall be '0 deeiii8d to hive been d6w~:~ -taken under the principal act, as amended by tbie act·· ' 't :jb~~; c' \i"~),p\l'i'l{~j (~j'l~),:,~" ' li~ i "j ,~~,',',' ;" ';c ll' :l-",\\-subsequent to the amendments which were made to the payment of ndtomlahaet, l'in 1975j· ,},there" were i ~~r~ ~gt;~~s " ~r~/~er amendments some of these were incorporated in the ~ayj:p,e~tq~:~us (amendment) act, 1977, which was made applicable for the accounting 'yiirne6\?l!fleft~ oh mw day fbi 197g"'jhe~ram~nc1ed 'provtlidns 'were '"ftterl4e!cf~litonl"yeb t&(~a'l' ;il '"+1'1,, "\~:' i ;i 1< 'lj', ;,r~ ," i ~ ,(,' ', /rl,f~ -_ ; _l 'w'  ,l~' ~:;t)';o','-i the trade union organisations as also the ,e~pjpfi)!rli~,~g~~~!md been urging that the policy with regard to the payment of bonus liould be settled and there must be stability in matters of minimum bonus, maximum bonus and the formula for calculation of bonus the various suggestions, both of workers and of employers, were considered and it was decided to amend the act, inter alia, to give effect to the following proposals, namely: (i) a provision for payment of a minimum bonus at 833 per cent or rs 100, whichever is higher, should be made in the act (ii) banking companies should again be brought within the purview of the act (iii) the appropriate government should be enabled to delegate the power to institute prosecutions for offences under the act to an officer not below the rank of a regional labour commissioner or a state labour commissioner, as the case may be as parliament was not in session and payment of bonus for the accounting year commencing oj"l any day in 1979 had become due, the payment of bonus (amendment) ordinance, 1980, was promulgated by the president on the 21st august, 1980 the bill seeks to replace the aforesaid ordinance opportunity is being availed of to am;!nd section 20 of the act to clarify the position regarding the extent of applicability 01 the act to employees in establishments in the public sector new delhi; narayan djtt 'riwal\i the 26th not'err f)er, 1980 m emorandum regm-ding modification contained in the bill to replace the payment of bonus (amendment) ordinance, 1980 ( the bill closely follows the ordinance with a shtht mndi8ctaudll explained below 2 a new clause 11 has been added to the bill to amend aection z8 of the payment of bonus act, 1965, for the ,?urpose of excluding the eiij-ployees employed in any non-competitive public sector unclertjdnp from the purview of the act  annexure extracts from the payment of bonus act, 1985(21 of 1965)      z in this act, unless the context otherwise requires,-     (4) "allocable surplus" means-(a) in relation to an employer, being a company which baa not made the arrangements prescribed under the income-tax act for the declaration and payment within iadia of the dividends payable out of its profits in accordance with the pr0-visions of section 194 of that act, sixty-seven per cent; of the available surplus in an accounting year;  -    10 of 19u 38 of 1959 2 of 1934 (8) "banking company" means a banking company as deftned in section 5 of the banking companies act, 1949, and includes the state bank of india, any subsidiary bank as defined in the state bank of india (subsidiary banks) act, 1959, any corresponding new bank specified in the first schedule to the banking companies (acquisition and transfer (if undertakings) act, 1970, any c0-operative bank as defined in clause (bii) of section 2 of the reiene bank of india act, 1934, and any other banking institution which may be notified in this behalf by the central government;  -    4 the gross profits derived by an employer from an estabjblhment in respect of any accounting year shall be <:alculated in the manner specified in the first schedule  -    8 the following sums shall be deducted from the gross profits as prior charges, namely:-     (b) any amount by way of development rebate or development allowance which the employer is entitled to deduct from his income under the income-tax act;       - (d) such further sum1' as are specified in respect at the employer in the second s<:hedule /      7 any direct tax payable by the employer for any accaunting year shall, subject to the following provisions, be calculated at 1he rates applicable to the income of the employer for that year, namely:-     cajcula· tiodof direct -~­by "po-1o)'w (e) no account shall be taken of any rebate (other than development rebate or de-vclopment allowance) or credit or relief or deduction (not hereinbefore mentioned in this section) in the payment of any direct tax allowed under any law for the time ~ing in force relating to; 4,ij'~c~ "ta~,es or under the relevant addual finance act, for the dev'u1{)ment' of any industry ~i ~ - - - amount of bonus , '' 10 (1) subjec·t to t~;<o~her provisions of this act, where an empl8yer has any allocable surplus in any accounti~g year, then, he shall be bound to pay to every employee in respect of that accounting'yeat' )irjidi\i~· bbnus (wlrieb al!ldl'not'be" tilbjj four per ~nt of the sa 1ary or wage earned by the employee during the accounting year or one hundr~d"ru~es ~~c~~ver1~ h~~~r, or, in 'i :  ;~e: ,~~1:e ,the iu~ocabl~ surplus ex~eeds the 'stid imount of , ,; ,~4m bq~ p~y~~~jft?s~:etnplb~~es/~ 'a~~iu in proportion ;;t ~ t~~;aalayr -01,' wqe earned"bythe elmploree c!uflhg ttfie account-"": ~ lear $u~~t to il'ina7'cm'lun 'of ~enty'pt!~,~of ~ salary or i w;age;, , , , provided that :whe~ ,:m employee has n~t ~ ~o~t~ted fifteen years of age at the beginning of that accountblg yea'r, the' provisions , 9f this sub-section shull have effect in' relation to ~such employee ,"m'()ks it ~or-thle wotbs' 'ucmehtindn!d r'tl'pees"',the 'woj'flls "sb:ty rupees" w~e' '~ub~ttuted , ,':,a)' ~if,oh~'ithstaiiaing "anything contailted "in rsub-~n (1),  ,,:p'!~~ f,n1il?,yersliall b~, bou~1 to pely t,o ,every_ ~i'l~yee" ~'"k-espect j:hf t~: '!fcq,:!~bn", >,~ar,,~dm~~ncing 'qn any day' in ~e, 'y~'1974, a , ,~~~qj,n ,'b~nus ,which aia1lbe four per' cent ~f the"~dr wage 'i'f,:elifpeprr)he e~p!,oyee' 'durll\~, t,hht actountin$ 'ye~~ o,r'~'(h\lndred rljprr~f fw,~chevej: ,1";, ht~,ler, w~ther or not iheemployer '-!tas any aifoc,~ble surplus in that -:accountlng year: , provided that where an employee has not completed fifteen "yeats, of age at th'e beglnftlil1g' of that aeeounttng 'year, 'the/provisions of tllls stib-sl!ctioh" ~hal1 h8q~ e~ in 'f@lation t6':llueh ';employee as if for the words "one hundred ru~",' 'th" words "'ijixty' rapees" wer~ substituted  ,,~-': ", r (~ 'for -the putp08eb 'of, ihis section, the auooable surpb shall be computed taking into account the amount !bet ,on or"set, qft i&the bodii~  we-'~s 'f& certain employees thr~ immediately preceding accounting years and in the accounting year in respect of which the bonus is payable, in the manner illus- '!fljated in:" thiah9e1wdule' ' ,"1 ","' - - - 12 where the salary cir wage df an 'employ~e 'ex~eetts' seven hunored and fifty ruqees per mensem, the bonus payable to such ,,~1miployeeuflder section l() shldl be calculteel as, >if bi salary of wage were seven hundred and 'fif~'rupees 'per ,l1fteneem; - - - - - •• 1 ;:~ where an e~plqy~ has not worked ! for,~ll, th!!, "fol'king ~y~ in ~ ,~ceount~ y,eclt: • tre:b~n\ls payable t~, hiql uuaer: ~~on lq"spa1i b~ proportionat~~y ,reduce4 :' " - -   , - - tn l "allr-ble'lurplus e~ the amount of benus payable tg the empiqr'~ int', cbe estmtsl'm1ehtunderse<!tion:l0,:then, the exoeu,shall,~lnh1eei tg:, a liurit1'bf twenty ~r:cent of·the tatall salary qli,w_ge of tba;em-, p~ employed in the "esta,blilbment in, itha, accouniillll ;)'i8b, be 'eariw' (fgrwal'd (for bei~"set,on dn theslil¢c;:eediilg;acceua~'year mdi'so,on, u"be'~utiused for i the p~,of,pa,-tnat'cofjboilu,'m the manna!!· illuatrated"m the tbird· schedule ;) ;')11  (21 where for any accounting year, there is no' rilloea~ surplus or ibeallocablesurplus in respect of that yeat'ifmis s'hc1h ()fitjle 8j!lount of boil'us payable to the employees in the ~e&tabwdltdent under section 10, and there is no sufficient amount carried forward imd '~on';umiet' sub-secticm (1);' which could, bdutilwldttdl' the purpose 'oftpayment of bonus, then, so much''8moullt;,u <die fy for the payment of bonus under this act, shu ' be; aalded t-ift:rd for being set off in the succeeding accounting year and so on in thf ~)llu~tr~ted in the:i ttprd l~hep\,li'j , , '(' " ' (3}, thej,wi~ip~ o~ ~tojl and li~t o« • ,:i11usyim~,,~;~e third schedule,,,shau, apply to am othe~ic~dpt~icov~j1jw ,~ section (1) or sub-section (2) for the purpose of payment of bonus under, this act 16 (1) - • }, i'" - ij '1, q: - -  - - - - (1b) for the sixth and s~venth accounting years following ·~be ac;cotmtijlg, y~ ,1a, which" ~,emp1o~~ ~,~ll~~~ \joqq, llp,!duced special provisions with respact to certain establishme"w:'  "r or~n~a,ctt~ed by, hun ,or ,renf!rs ,s'j;mjc~~,(:,~"the-"cr~~ptwj,~, ;·t'···  , ,aj~ ~"~ ~~i<u>l~ent,) the, prqvisiqi+1 at, ~~ 1~ ~hnl,''jpp}y ,~bj~ct, to the fc¥lo;w:ing moditic~t;ioj;l8, n~: -n- ,'; '" fi· - fi:':'oo, j /) :)f:(o em: ' co f~r t~e sixth acco~nti~g, y~ar-, of seton or set oft} 41,the-jca&ealf~_, shall ,be ,madelia ~m~~ trated in the :tbird seh~qakiag into account  ,the esciis f~rrdetlei­ency, if any,aa,tbec_fa,:"be,~of the ,allooadle,surplua, ;!~'qj1 ,of";let olf in, respect of ,tlle;mil:ad iisth accounting years;, (>', 'j (ii) jp[ntbe sevenul: ~ccohntipg ,eu,, ,v, , set on or set off, as th~4n\mincjide, shall be made in the manner illus-i'; 1<';· trate~"in the~, sfh~ul~taldng into account the excels" of defici-, en~y, if any, ~s tfu! case~idiy'~: of the a:n~able' jurplus 'se't,'i()n ~~,t\et oft'in res" t'ofe·fiith,')~txth··l, d seventh ~urittn~ ye8i~>!"-" - ,~ ••  - anllhp loyer u where any money is due to an employee by way of bonus ,from m employer under a settlement or an award or agreement, the employee himself or any: other person authorised by him in  writing in this behalf, or in the case of the death of the ~ployee, his assignee or heirs may, without prejudice to any other mode of recovery, make an application to the appropriate government for the recovery of the money due to him, and if the appropriate government or such authority as the appropriate government may specify in this behalf is satisfied that any money is 80 due, it shall issue a certificate for that amount to the collector who shall proceed to recover the same in the same manner as an arrear of land revenue: promed that every such application shall be made within one yaarlrom the date on which the money became due to the employee from the employer: provided further that any such application may be entertained after the expiry of the said period of one year, if the appra,riate government is satisfied that the applicant had suftlcient cause for dot making the application within the said period e%pl4nation-in this section and in sections 22, 23 and 25, "employee" includes a person whc is entitled to the payment of bonus under this act but who is no longer in employment - - prell mptiodabout accuncj or balancesheet and ,etand 1011 8iccoudtdf cosp:ntkidiadd com pant  13 (1) where, during the course of proceedings before any arbitrator or tribunal under the industrial disputes act, 1947, or 14 of 1"" under any corresponding law relating to investigation and settlement of industrial disputes in force in a state (hereinafter in this section and in section 25 referred to as the "said authority") to which any dispute of the nature specified in section 22 has been l'derred, the balance-sheet 'ind the profit and loss account of an employer, being a corporation or a company (other than a banking company), duly audited by the comptroller and auditor-general of· inclia or by auditors duly qualified to act as auditors of companies under sub-section (1) of section 226 of the companif'!s act, 1956, are produced before it, then, the said authority may presume 1 of 1858 the ltatements· and particulars contained in such balance-sheet and profit and loss account to be accurate and it shall not be necessary for the corporation or the company to prove the accuracy of such statements and particulars by the filing of an afrdavit or by any other mode: '-_ provided that where the said authority is satisfied that the statements and ~tieu1ars contained in the balance-sheet or the ~ and lois account of the corporation or the company are not aceurjite, it may take such stet;?s as it thinks necessary to find out the accuracy of such statements and particulars  - - - - - cognizance of o1!ences 30 (1) no court shall take cognizan~ of any oftence punisliable under this act, save on complaint made by or under the authority of the appropriate government - - - - - 31a notwithstanding anything contained in this act,-(i) where an agreement or a settlement has been enter~ into by the employees with their employer before the commence--ment of the payment of bonus (amendment) act, 1976, or special provision with respect to payment of bonus, linked with production or productivity (it) where the etnployees enter into any agreement or settle-, ment with their employer after such commencement, for payment of an annual bonus linke:! with production or productivity in lieu of bonus based on profits payable under this act, then, such ~mployees shall be entitled to receive bonus due to them nnder such agreement or settlement, as the case may be: provided that such employees shall not be entitled to be paid such bonus in exocess of twenty per cent of the salary or wage earned by them during the relevant accounting year act not to apply to certain classes of employees 3z nothing in this act ghall apply to--   - (vii) employees employed by a banking company; - - - - - - (ix) employees employed by-  - -  (if) the industrial reconstruction corporation of india; (g) any other financial institution, being an establishment iil public sector, which the central government may, by notification in the oftlelal gazette, specify, having regard to-(i) its capital structure (ii) its objectives and the nature of its activities (iii) ibe nature and extent of financial assistance or 1c1ny con~elhion given to it by the government; and (iv) any o~~r relevant factor;       the first schedule (see section 4) computation of gross profits| accounting year ending    |     |                      ||---------------------------|-----|-----------------------|| -__---__--------__--   |     |                       || -                         |     |                       || --                        |     |                       ||                           |     |                       || ~-                        |     |                       || item                      |     |                       || no                       |     |                       || parfc                     |    | an                    || amo·_nt                   |     |                       || o                         |     |                       || ilb-:tems                |     |                       || amount                    |     |                       || 0"                        |     |                       || remarkj                   |     |                       || in'lin                    |     |                       || i                         |     |                       || ti;m                     |     |                       || --                        | --' | ---------__------+-_ || ri                       |     |                       || -                         |     |                       ||                         |     |                       || -                         |     |                       || -                         |     |                       || -                         |     |                       |(d) d~velopme,' re'-at~/d~veioprrcnt 2 add hljek i'rovis; on for: a 110 wa iulc i'itvll  [$,e~section 6(d)]item no category of employer further sums to be deducted ----- -------------- --i _---__---------------company (i) th~ dividends payabl~ do its pre ference share dtpital for the accounting year calculated at the actual rate at which tuch dwidendl are payable; (ii) 85 per cerit oflts paid up equity ,hare ca'pital al at 1m rom'm~n­cement of' the accounting year ; (iii) 6 per cent of its reserves shown in its balancel-lheet as at the oommencement of the accounting year, induding any prdfits carried foj'wal'd fro!n the previous alcco\inting year: pilovided that where the employer is a foreign company within the meaning of tection 59 i of the companies act,j956 the f 6 total amount to be deducted i 0 195 under this item shall be 8 5 p~r cent on the aggr-te of the value of the net fixed assets and the current alsets of the company in india after deducting the amount of its current liabilities (other than atty amount shown as payable by the company to itl head office whether towards any advance made hy~be'head office or otherwile or any interelt paid by the company to its head office) in fnd • - - - - - --------------eanation-the expression ccreterves'· occurring in cloumn (3) against item nos i (iii) and 3(ii) shall not includeanyaunount set apart for the purpose of-(i) payment of any direct tax which, according to the balance-sheet, would bep2'yabje ; (ii) meeting any depreciation admilsibje in accordance with the provisions of clawe (a) of section 6 ; (iii) payment of dividends which have been declared, but shall include-(0) any amount, over and above the amount referred to in clause (i) of this ejlplanation, set apart anpecified reserve for the purpose of payment of any direct tax ; and (h) any amount set apart for meeting any depreciation in excess of the amount admiss,able in accordance with the provisions of' clause (a) of section 6  the third schedule(see sections 10, is and 16) the illustration in this schedule has been worked out with reference to an establishment which has an annual salary or wage bill of rupees one lakh, twenty per cent of which amounts to rs 20,000 and four per cent of which amounts to rs 4,000 year amount equal 'eet on' or 'se' amount paid or balat'ce of 'set to sixty per cent off' of the prepayable as bonus on' or "sct off" or sixty-seven ceding year per cent, as the case may be, of available surplus allocable as bonus (i) (2) (3) (4) (5) ----------_  __  (rs) (rs) (rs) (r~) i 42,000 +3,000(a) 20,000 +23,000 2 nil +23,000 20,000 +3,000 3· 10,000 +3,000 13,000 nil 4· 10 nil 4,000 -3,990 5· 100 -3,990 nil -3sgo 6 nil -3,890 nil -3,sgo 7· 23,890 -3,8go 20,000 :"til 8 nil nil nil nil 9· 25,000 nil 20,000 +5000 10 15,100 +5,000 20,000 +100 ii nil +100 4,000 -3,900 __------notes-i the notation ,,+" denotes 'set on' and the notation ,,-" denotes 'set oft" 2 "(a)" represents the amount 'sct on' as calculated under the provisiom of this act as it stood immediately before the commencement of the payment of bonus (amendment) act, 1976•  a billfurther to amend the payment of bonus act, 1965 (shri narayan datt tiwari, minister of planning and labour) 