1. Computation of gross profits.—
The
gross profits derived by an employer from an establishment in respect of the
accounting year shall—
(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 specified in the Second Schedule;]
2. Computation
of available surplus.—
The available surplus in respect of any accounting
year shall be the gross profits for that year after deducting therefrom the sums
referred to in section 6;
[Provided
that the available surplus in respect of the accounting year commencing on any
day 1968 and in respect of every subsequent accounting year shall be the
aggregate of –
(a) the gross profits for
that accounting year after deducting therefrom the sums referred to in section
6; and
(b) an amount equal to the difference between --
(i) the direct tax,
calculated in accordance with the provisions of section 7, in respect of an
amount equal to the gross profits of the employer for the immediately preceding
accounting year; and
(ii) the direct tax,
calculated in accordance with the provisions of section 7, in respect of an
amount equal to the gross profits of the employer for such preceding accounting
year after deducting therefrom the amount of bonus which the employer has paid
or is liable to pay to his employees in accordance with the provisions of this
Act for that year.]
