the payment of bjnus (amendment) bill, 1977 l-to ,be/as introduced in jpk sabbal 1 page 3, line 4,-aftar "explanation," t!uj&l "for n 2  :page ", line 30,-against item no5! in coluim'l under the head "particu a,i"s",-lqr " no s 1 2, 3, and 4 " read "no s1, 2, 3 and 4" 3 page 12, in the marginal heading to section 6,-~ "fits" ~ "profits" 4 page 12, line 2 from bottom,-fql "devolpment" ~ "development" 5 page 13, line 2,-(i) for ''purpo ::9 se " read ''purpo se s" (ii) for "alo lcable" read "allocable" (iii) for "shal" read "shall" 6 page 13, lino 6 from bottom,-for "acounting" ~ "accoun ting" kartika 2, 1 99 ( saka)  bill no 133 of 1977 the payment of bonus (amendment) bill, 1977a bill further to amend the payment of bonus act, 1965 be it enacted by parliament in the twenty-eighth year of the republic of india as follows:-1 (1) this act may be called the payment of bonus (amendment) act 1977 short title and commencem:mt , (2) it shall be deemed to have comf: into force on the 3rd day of september, 1977 2 the payment of bonus act, 1965 (hereinafter referred to as the principal act) shall,-(a) in relation to a factory or other establishment to which the 10 principal act applies immediately before the commencement of this act; and act 21 of 1966 to have modifted eft'ect for a particular period (b) in relation to a banking company and the industrial reconstruction corporation of inma to which the principal act applies on and from such commencement by virtue of this act, is have effect in respect of the accounting year commencing on any day in the yeari 1976 as if the amendments ~ifled in sections 3 to 20 had' bl!en made in that aqt explarultion-in this section, the expressions "banking company" and "accounting year" shall have the meanings respectively assigned to 20 them in clauses (8) and (1) of section 2 of tbe principal act substitution of long title 3  in the principal act, far the long title, the following long title shall be s\lbstituted, namely:-"an act to provide for the payment of bonus to persons employed in certain establishments and for matters connected therewith" s amendment of section 2 4 in section 2 of the principal act, in sub-clause (0) of clause (4) i after the words "being a company", the brackets and words" (other thfln a banking company)" shall be inserteci "4 the gross profits derived by an employer from an establishment in respect of the accounting year shall-substitu-5 for section 4 of the principal act, the following section shall be tion of substituted, namely: -10 new section for section 4 computation of grms profits (a) in the case of a banking company, be calculated in ·the manner specified in the first schedule; (b) in any other case, be calculated in the manner spec!- is fied in the second schedule" 6 in section 6 of the principal act,-amendment of section 6 (a) in c]ause (b), for the words "development rebate or de-'ftlopment allowance", the words "development rebate or investment allowance or cievelopment allowance" ,shall po substituted;   20 (b) in clause (d), for the words "second schedule", the words "third schedule" shall be substituted amendment of section 7 7 in section 7 of the principal act, in clause (e), for the brackets and words "(other than development rebate or development allowance)", the brackets and words u (other than development rebate or ,investment 2s allowance or development allowance)" shall be substituted , 8 in section 10 of the principal act,-amendment of section 10 (a) after sub-section (2), the following sub-section shall be inserted, namely:-'(2a) notwithstanding anything contained in sub-seetlon 30 (1), every employer shall be bound to pay t() every employee a minimum bonus whicbshall {be 833, per cent  oi the s~ary or wage earned by the employee during the: ~ccounting year or one hundred rupees, whichever is higher, whether or not the employer has any allocabl~sutplus in the accounting year: ,  35 provided that where an employee has not completed tuteen years of age at the beginning of the accounting year, the provisions of this su~e¢ti'on smil have -effect in relation to such employee as i~·for the 'words i{~ hunch-eli'rupees", the  words "sixty rupees'" were substituted'':  ";; 40 (b)· in sub-seetion (3), f~ the w~rds "t)lird sch~dule~~, the words "fourth schedule" shall be 8ubstitutec1  "; ' ,  9 in section 15 of the principal act, for the words "third !schedule" ,wqerever they oceur, 'the 'mii'ds "fourth schad",l," 3hall be sublti~ted amendment of section 15 , 10 in ~qq ,16 of, the principal act, in bub-section (lb) for the 1 ~orcts ~i~,bircl ,~l::h~e',i at bpth the places wh~e they oc~ur, the words "fourth schedule" shall be substituted amendment of section 16 rll in secijon ~~ of the , principal act, in the explanation, '~ the amendwords and figures i sections 22, 23 and 25", the words and figures '-sections ment of s 22, 23, 24 and 25" shall be substituted , section 2t 12 in section 23 of the principal act, in sub-section (1), for the wprd ~ figures "section 25", the ~ords and figures "sections, 24 and 25" sball·btt su~tw,ated amend ment of -on 21 ,; r ,, 13 -after ~on '23 of the principal act, the following section shall insertion 10 be inserted, namely: _ ~ of ~ sectlctn is" 21 , audited ,acc°llpt ot bankingcom-penial not to be queatioar ed "24 (1)' where any dispute of the nature specified in ie,tion 22 ,between an employer, being a banking company, and its employees has been merreq to the said authority under that section and dulling the cou1'lie of ptooettdings the account$ of ~ banking com- pany 'duly audited are pr<dueed before it, the sald authority, shall not permit any trade union or employeetj-to question the correctnes; of such a~cb~ts but the trade union or the employees may be permitted to obtain from the banking company such information as is necessaty for verifying the amount of bonus due under this act 20 loot 1949 (2) nothing contained in sul>-section (1) shali enable the trade union or ,the employees to obtain any information which the bankirig, 'jc(),m~n,y' 'is not cbin~elled to furnish under the provisions of section 3fa of the banking'regulation act, 1949''- , ~ ' , - j  m in section 27 of the principal act, after sub-section (4), the =::i 2st following sub-sectiqn shall ,be i~serted namely:-section 27 "(5) nothing containen in this section shall enable an inspector to require a banking company to furnish or disclose any statement or  information or to pr6duee, or give inspection of, any of its books of '1 r'acco~rit ~·other dotitrnel'lts, which a banking company cannot be 30 cihripehed to furnish, disclose, produre: or ,give inspeetim of, under the ptovisions df section 34a of the banking regulation act, 1949" loot 1949 amend· ment 'of lection sla 15l in section 31a of the principal act, in the proviso, for the words "provided that" the words "provided further that" shall be substituted , aria 'before' the· proviso ,as 'so' amended, 'the following proviso, ahau be 3s inserted, namely:-"provined that 'biln s,l~ agreement or settlement whereby the employees relinquish their right to receive the minimum bonus under ~b:-saction ,(u) of e1~ction 10 s~~ be,null and void in so far as it ,purporta ;to; dew-ive tllem9f 8uc~lirlght  16 in section 32 of the principal act,-(a) ~use ,(vii) ~l be o~itted; amendment of section 32 -  ';  , (b) ill eleule ,(i3::),-~ '-, 11 ,  (i) su1l-c1e"- (ff), sball be omitted; (ii) in bub-clause (g), after the words "financial institu'tion", i the brackets and words ii (other than a banking company)" shall be inserted 17 forsection 34 of the principal act, the following sections shlill be substituted, namely:-s substitution of new sections for l3ection 34 "34 nothing contained in this act shall be construed to preclude employees employed in any establishment or class of establishments from entering into agreement with their employer for granting them an amount of bonus under a formula which is different from that unner this act: 10 provided that no such agreement shall have effect unless it is entered into with the previous approval of the appropriate government:· employees and employers not to be precluded from enterins into agreements for grant of bonus under a different formula provided further that any such agreement whereby the employees relinquish their right to receive the minimum bonus under subsection (2a) of section 10 shall be null and void in so far as it purports to is deprive them of such right: provided also that such employees shall not be entitled to be paid bonus in excess of-(a) 833 per cent of the salary or wage earned by them during the accounting year if the employer has no allocable surplus 20 in the accounting year or the amount of such allocable surplus is only so much that, but for the provisions of sub-section (2a) of section 10, it would entitle the employees only to receive an amount of bonus which is less than the aforesaid percentage; or 2s (b) twenty per cent of the salary or wage earnec\ by them during the accounting year 34a subject to the provisions of sections 3la and 34 the provisions of this act shall have effect notwithstanding anything inconsistent therewith contained in any other law for the time being in force or in the terms of any award, agreement, settlement or con- 30 tract of service" effect of laws and agreements inconsistent with the act 18 in the principal act, the first schedule shall be renumbered as the second schedule and,-amendment of the fir&t schedule (a) in that schedule as so renumbered-35 ~ • '''l (i) for the brackets, words and figure "(see section 4)o"t the brackets, words, figure and letter "[see section 4(b)]" shall be substituted; (ii) in column (2), ~gainst item no2, 'for the entry "(d) development rebate/development allowance ~rve"· the 40 entry "(d) development rebate/investment allowance/development allowance reserve" shall be substituted; (b) before that schedule as so renumbered, the following  schedule shall be inserted; namely:- 'the first schedule [see section 4(a)1 compt1fation of gross profitss accounting year ·en~g"""'''''''''''i'~'' ---- item no particulars amountof amount of remarks sub-items main; itemi -----------------------------------ri ri 10 - 1  net profit as shown in the profit and loss account after making usual and necessary provisions (d) any other reserves ~ add back provision for : (a) bonus to employees 15 (b) depreciation (c) development rebate reserve s footnote (i) $14 footnote (i) 20 total of item no 2 ri s, footnote (i) 3 add back also : (a) bonus paid to employees, in respect of previous accounting years 30 3s s footnote (i) 4s so (b) the amount debited in respect of gratuity paid or payable to employees in excess of the aggregate of-(i) the amount, if any, paid to, or provided for payment to, an approved gratuity fund; and (ii) the amount actually paid to employees on their retirement or on termination of their employment for any reason (c) donations in excess of the amount admissible for income-tax (d) capital expenditure (other than capital expenditure on scientific research which is allowed as a deduction under any law for the time being in force relating to direct taxes) and capital losses (other than losses on sale ot capital assets on which depreciation has been allowed for incometax) ---wbcre the profit aubjec: to taxation ii aho~1a the prailt addlco  acc:ollll" iiid the ~vialod made for taxea on ij:a-:ome il i~ own, the actaal provilinn for t_ on inc '·me lhall be deducted from the profit item no particulars amouat of amount of relda:b sub-items main items ri as 5 10 of 1949 10 (e) any amount !=ertified by the reserve bank of india in terms of sub-section (2) of sectiqq3oth of the bulkiog ~tiod act, 1949 u) losacs of, or expendit1u'e relatial to, any bllsiness situated outside india total of item no3' rs ----4 add al,o income, profits or gains (if any) credited directly to published or disclosed re-is serves, other than-(i) capital receipts and capital profits (including profits on the sale of capital 888et8 on which depreciation has dot been allowed for incometax) ; (a) profits of, and receipts relating to, any business situated outside india; 25 (iii) income of foreign banking companies from investments outside india net total of item no 4 ri 5 total of item nos i 2, 3, and 4 rs 30 s,! footnote ~2) 35 see footnote (2) see foot-40 note (2) 45 so 6 dedur:t: (0) capital receipts and capital profits (other than profits on the sale of assets on which depreciation has been allowed for income-tax) (b) profits of, and receipts relating to, any business situated outside india (c) income of foreign banking companies from investments outside india (d) expenditure or losses (if any) , debited directly to published or disclosed reserves, other than-(1) capital expenditure and capital losses (other thad ' losses on sale of capital assets on which depreciation has not been allowed for income-tax); , i> - (;,) losses of ;illy buain,eas i ,i \i ~ ' "ced, 0uibl~ india item particulars amount of amount of remarka no sub-items main i~tms rs rs s (e) in the case of foreign bank-s" footing companies proportionnote (3) ate administrative c head) expenses of ead office anocable to indian 10 businesr (f) refund of any excess direct see foottax paid for previous renote (2) counting years and excess provision, if any, of previ-is oas accounting years relating to bonus, depreciation, or development rebate, if written back (,) cash 8ubsidy, if any, given see foot-20 by the government or by note (2) any body corporate established by any law for the time being in force or by any other agency through ·5 budgetary grants, whether given directly or through any agency for specified i purposes and the proceeds of which are reserved for 30 such purposes total of item no 6 rs 7· gtoll profits for purposes of bonus rs (item no s minus item no6) --_ -- _j------ __------------~ explanation-in sub-item (b) of item 3, "approved gratuity' fund" has the 3s 'iul1c'meaning assigned to it in clause (5) of section :2 of the income-tax act foot-notes-(i) if, and t th' exle~t charged to profit a,d loss ac:oun  (2) if, and to the exten , credited t , profit l nd los ac:count (3) in the proportion of inlign gross pr fit (joem n " 7) '0 to' 81 world gr088 profi~ (  , per co:-·solida ed profit apd loss ace: unto adju9!ed iii in it~ m no, 2 above , my) iq in the principal act, the second schedule shall be renumbered as the third schedule and in that schedule as so renumbered,-amend ment of the second schedule (a) in column (2), against item no i, for the word ('company", the 45 worc:ls "company, other than a banking company" shall be substituted; i (6) after item no  i and the entries relating thereto, the following item 8ild enuies shall be inserted, namely :---------------------2 3 so "2 bankiag company (, the dividends payable on its preference share capital for the accounting year calculated at the rate at which such dividends are payable ; (ii) 7 s per cent of its paid up equity share capital as at the commencement of the accounting year; (iu) s per cent of its reserves shown in its s balance-sheet as at the commencement of the accounting year~ including any profits carrie4 forward from the previous accounting year; (iv) any sum which, in respect of the 10 accounting year, is uansferred by it-(a) to a reserve fund under sub-section (1) of section 17 of the banking regu-10 of 1949 lation act, 1949; or (b) to any reserves in india in pur- is suance of any direction or advice given by the reserve bank of india, whichever is higher : provided that where the 30 banking company is a foreign company within the meaning of section 591 of the companies act, 1956, the amount 25 1 of 1956 to be deducted under this item shall be the aggregate of-(a') the dividends payable to its preference 30 shareholders for the accounting year at the rate at which such dividends are payable on such amount as 35 bears the same proportion to its total preference share capital as its total working funds in 40 india bear to ita ' total world working funds; (ii) 7·5 per cent of such amount as bears 45 the same proportion, to its total paid up  equity share capital as its total working funds in india bear 50 to its total world working funds;  (iif) s per cent of such amount as bears the same proportion 55 (i) to its total disclosed t·· ~es as ita total _, j working funas in india bear to its tbtal wocld workirll fua&; is 10 of 1949 " ' (hi) any sum wtuch, "iare8peot of the accounting year~ is deposited  by it with the reserve baflk of indii tinder ilib--clause (i') c1f clause (b) of sub-section (a) of section ii of the banking regulation act, 1949 not;, excf'cd:ing the amount required under the aforesaid provision to be so ddposited"; '" " (c) in the explanation, for the figtires,-brackets a:nd word "1 '(idi) and 3 (ii) ", the figures, brackets and word "1 (iit) , 2 (iii) and 9 (ii) " , "  al be substituted is' 20: l'ln the principal act, the third schedule shall be renumbered as the fourth schedule 9 of 19'17 r 21 v}, ,the, p~ent of bonus (amendment) orciinance, 1977 is hereby repealed amendment at the third schedule repeal and saving (2) notwithstanding such repeal, anything done or any action taken 30 under the principal act, by virtue of the amendments thereto made by the said ordinance, shall 'be deemed to have been done or taken under the principal act by virtue of the corresponding amendments thereto made by this act  st4tement of objects and reasonsin 1975, a number of substantial amendments were made in the payment 01 bonus act, 1965 by means of the payment c:1f bonus -(amendment) ordinance, 1975 p~omu1gated on the 25th "september, 1975 th1a ordinance was tater replaced by the payment of bonus (am~dment) act, 1976 (23 of 1976) as a result of these amendments, a minimum bonus of four per cent only was payable in respect of the accounting year commencing oil any day in the year 1974 and no minimum bonus was payable in respect of subsequent accounting years if there were no allocable lurplus in those years some other changes made by the amendment act allo adversely affected the workers 2 several representations on the amendments were received by the government after careful consideration of the matter, government decided that the payment of bonus act, 1965 should be amended to provide, inter alia, for the payment of a minimum bonus of 833 per cent whether there was allocable surplus or not it was also decided that these amendments should hllve effect in respect of the accounting year commencing on any day in the year 1976 i 3 since parliament was nc1t in session anti since it was neceuary to take immediate action, the payment of bonus (amendment) ordinance, 1977 was promulgated by the president on the 3rd september, 1977 the present bill seeks to replace the aforesaid ordinance new dillhi; the 11th november, 1977 ra vindra varma memonftdum ref1mc:img modification coatained in the bul to replace the payment of bon", (amendment) ordinance, 1977 the bill cloeely follows tne orc:jinanee with a slight modiftcation aplained deiow 2 a new clause 7 h;ls been added to i the bill providing for a consequential amendment to clause (e) of section 7 of the payment of bonus act, 1865 'nus is only to rectify an omission which had crept in the ordinance  annexuredeftnitionb extracts from the paymi!:nt or bonus aer  ~, (21 of 1965) ·   1  an act to provide for the payment of bonus ·to pertlods"emp~ed id certain establishments on the basis of profits or on the basis of production or productivity and for matters connected therewith - - - - - - - 2 in this act, unless the context otherwise requires,-- - - - - - - (4) "allocable surplus" means-computation of gross profit& - as (a) in relation to an employer, being a company which haa not made the arrangements prescribed under the income-tax act for the declaration and payment within india of the dividendr payable out of its profits in accordance with the provisions of section 194 of that act, sixty-seven per cent of the available surplus in an accounting year; , (b) in any other case, sixty per cent of such available surplus, - - - - - - - 4 the gross profits deriveo by an employer from an establishment in respect of any accounting year shall be calculated in the manner speci8ed in the first schedule - - - - - 6 the following sums shall be deducted from the gross proftts prior ch8ll'ges, namely:-- - - - - - sums deductible from gross fits calculation of directtu: payable by the employer - (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 sums as are specified in respect of the employer in the second schedule - - - - - - - 7 any direct tax payable by the employer for any accnunting year shall subject to the following provisions, be calculated at the rates applicable to the income of the employer for that year, namely:-- - - - - - - (e) no account shall be taken of any rebate (other than development rebate or development allowance) or credit or relief or deduction (not hf:reinbefore mentioned in this section) in the payment of any: direct tax allowed under any law for the time being in force relating to direct taxes or under the rplevant annual finance act, for the devolpment of any industry - - - - - amount of bonus 18 (1) - - - - - - (3) for the purpgle&e of this section, the alolcable surplus shal be k:omputed taking into aceount the amount set on or set off in the three immediately preeecltng bcoowlting years and in the accounting year in retlpect of which the bonus is payable, in the manner illustrated in the third schedule  - - - - - - - set on and~ of! of allocable surplul 11 (1) where for any accounting year, the allocable surplus __ ceeds the amount of bonus payable to the employees in the establishment unrler section 10, 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, to be utilised for the parpose of payment of bonus, in the manner illustrated in the third sehf'-dule (2) where for any accounting, year, there is no allocable iul'plus or the allocable surplus in respect of that year falls short of the amount of bonus payable to the employees in the establishment under teetion 10, and there is no sufficient amount carried forward and set on under subsection (1) which could be utilised for the purpose of payment of bonus, then, so much amount as is necessary for the payment of bonus under this act shall be carried forward for being set off in the succeeding ~ ounting year and so on, in the manner illustrated in the third schedule (3) the principle of set on and set oft' as illustrated in the third schedule shall apply to all other cases not ~overed by sub-section (l) or sub-section (2) for the purpose of payment of bonus under this act 16 (1) - - - - - - special provi8lons with respect to certain estabhah menta (lb) for the sixth and seventh accounting years following the accounting year in which the employer sells the goocis produced or manufactured by him or renders services, as the case may be, from such establ1shment, the provisions of section 15 shall apply subject to the following modiftcatlons, namely:-(i) for the sixth accounting year-set on or set off, as the cue may be, shall be made in the manner illustrated in, the third schedule taking into account the excess or deftciency, if any, as the case may be, of the &doc8-ble surplus set od or set off in respect of the mth anti sixth acou:nting years; (ii) for the seventh accounting yearset on qr set off, as the case may be, shall be made in the manner dlustrated in the 'l'hitd schedule taking into account the excess or deficiency, if any, as the case may be, of the allocable surplus set on ·or set off in respect of the fifth, sixth and seventh accounting years recovery of bonua due from an employer 21 where any money is due to an employee by way of bonus from his 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 employee, his assignee or he  s may, without prejudice to any other mode of recovery make an application to the appropriate government for the recovery of the mon-=y 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 so due, it shall issue a certiftcate tor that amount to the collector who shall proceed to recover the same in the same manner as an arrear of land revenue: provided that every such application shall be made within one year from 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 appropriate government is satisfl~ that the applicant had sufficient cause for not making the ap~ lication within the said period 14 at 1947 10f 1918 presumption about accuracy of balance-sheet and prom and loss account of corporations and companies ezpla7l4tion-in this section and in sections 22, 23 and 25, "employee" includes a person who is entitlen to the payment of bonus under this act but who is no longer in employment - - - - - - - 23 (1) where, during the course of proceedings before any arbitrator or tribunal under the industrial disputes act, 1947, or 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 referred, the balance-sheet and the profit and loss account of employer, being a corporation or a company (other than a banking company), duly audited by the· comptroller and auditor-general 0£ india or by auditors duly qualified to act as auditors of companies under sub-section (1) of seetion226 of 'the companies act, ·1956, al'e produced before it, then, the said authority may presume the statements 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 partlcu181l'8 by th~ flling of an aftldavit, or by any other mode: provided that w,here the said authority is satisfied that the statements and particulars contained in the balance-sheet or the profit and loss aecount of the corporation or the company are not accurate, it may take such steps as it thinks necessary to findp~t the ac~uracy of s\lch statements and particulars "  ita notwithstanding anytbulg contamec\ ta this act,-(i) where an agreement or a settlement has been entered into by the employ~ with their employer before the commencement of the payment of bonus (amendment) act, 1976, or (ii) where the employees enter into any agreement or settlement with their employe~ after such commencement, special provision with respect to payment of bonus linked with production or pro_ ductivity for payment of an annual bonus linked with production or productivity in lieu of bonus based on profits payable under this act, then, such employees shall be entitled to receive bonus due to them unr\er such agreement or settlement, as the case may be: provided that such employees shall not be entitled to be paid such bonus in excess of twenty per cent of the salary or wage earned by them during the relevant accounting year - - - - - - 32 nothing in this act shall apply to-- - - - - - (vii) employees employed by a banking company; act not to apply to certain claaaes of employees - - - - - - (iz) employees employed by-- - - - - (ff) the industrial reconstruction corporation of india; (g) any other financial institution, being an establishment in public sector, which the central government may, by notiflcation in the otrcial gazette, specify, having regard to-(i) its capital structure; i (ii) its object1ves and the nature of its activities; (iii) the nature and extent of financial assistance or any concession given to it by the government; and - meet of law, and agreemenu incodlliltent with the act (it) any other relevant factor; - - - - - m subject to the provisions of section 31a, the provisions of this act shall ha~ effect notwithstanding anything inconl1stent therewith containert in any other law for the time being in force or in the termi of any award, agreement, settlement or contract of service - - - - - - i  [sis section 41 comi'ttl'atjon 0' orois ptwfrri' accounting year ending  particulars remarks amount of sub-items amount of main items ri rs i nit profit as per profit and loll ac:couat 2 add back provision for : (~) bonus to employees (6) depreciation (c) direct taxes, including the provision (if any) for previous accounting years cd) development rebate/developmer1t allowance reserve   - -   ' - see foot-note (i) - - - - foot-notes-(1) if, and to the extent, charged to profit 8ftid loss account  - - - - -  thb sbcond schbdulb [su section 6 (d)]category of employer further 81imb to be deducted item no (i)  j i (') the dividends payable on its preference share capital for the ~wltina year calculated at the actaw rate at which such dividends are payable; (it) s 5  per cent of i~ paid up equtty share ~ is at the cmilmencemem: of tiie acc:ouotina  yc&r; (iti) 6 1 cent of its r-va ijb4win in its balance-sheet 18 at the c:ommeacemcnt of tile accounting year, including any profits carried forward from the previous accounting year: lof 1956 provided that where the employer is a foreign company within the meaning of section 591 of the companies act, 1956, the total amount' to be deducted under this item shall be 85 per cent on the aggregate of the value of the net fixed assets and the current assets of the company in india after deducting the amount of its current liabilities (other than any amount shown as payable by the company to its head office whether towards any advance made by the head office or otherwi!le or any interest paid by the company to its head office) in india  -  - $\qquad\qquad\quad\bullet\qquad\qquad\qquad\quad\bullet$explanation-the expression "reserves" occurring in column (3) against item nos i (iii) and 3(ii) shall not include any amount set apart for the purpose of-(i) payment of any direct tax which, according to the balance-sheet, would be payable; (ji) meeting any depreciation admissible in accordance with the provisions of clause (a) of section 6; (iii) payment of dividends which have been declared, but shall include-(a) any amount, over and above the amount referred to in clause (i) of this explanation, set apart as specified reserve for the purpose ,of payment of any direct tax; and (b) any amount set apart for meeting any depreciation in excess of the amount admissible in accordance with the provisions of clause (a) of section 6   - - - - - - a bill further to amend the payment of bonus act, 1965 (shri ravindra varma, minister of parliamentary affairs and labour) , 