Amendment status not verified — confirm the current text below against the official source.
2[Company, other than a Banking company] (i) The dividends payable on its preference share capital for the accounting year calculated at the actual rate at which such dividends are payable; (ii) 8.5 per cent of its paid up equity share capital as at the commencement of the accounting year; (iii) 6 per cent of its reserves shown in its balance-sheet as at the commencement of the accounting year, including any profits carried forward from the previous accounting year: Provided that where the employer is a foreign company within the meaning of section 591 of the Companies Act, 1956 (1 of 1956), the total amount to be deducted under this Item shall be 8.5 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 1 For the heading “THE THIRD SCHEDULE”, the heading “THE SECOND SCHEDULE” subs, by Act 23 of 1976, sec. 27 (w.r.e.f. 25-9-1975] and again the Second Schedule renumbered as the Third Schedule by Act 66 of 1980, sec. 20 (w.r.e.f. 21-8-1980). 2 Subs, by Act 66 of 1980, sec. 20, tor “Company” (w.r.e.f. 21-8-1980). 12(2) The Payment of Bonus Rules, 1975 company to its Head Office whether towards any advance made by the Head Office or otherwise or any interest paid by the company to its Head Office) in India. 1[2. Banking company (i) The dividends payable on its preference share capital for the accounting year calculated at the rate at which such dividends are payable; (ii) 7.5 per cent, of its paid up equity share capital as at the commence-ment of the accounting year; (iii) 5 per cent, of its reserves shown in its balance-sheet as at the commencement of the accounting year, including any profits carried forward from the previous accounting year; (iv) any sum which, in respect of the accounting year, is transferred by it— (a) to a reserve fund under sub-section(1) of section 17 of the Banking Regulation Act, 1949 (10 of 1949); or (b) to any reserves in India in pursuance of any direction or advice given by the Reserve Bank of India, whichever is higher: Provided that where the banking 1 Ins. by Act 66 of 1980, sec. 20 (w.r.e.f. 21-8-1980). 12(2) The Payment of Bonus Rules, 1975 company is a foreign company within the meaning of section 591 of the Companies Act, 1956 (1 of 1956), the amount to be deducted under this Item shall be the aggregate of— (i) the dividends payable to its preference shareholders for the accounting year at the rate at which such dividends are payable on such amount as bears the same proportion to its total preference share capital as its total working funds in India bear to its total world working funds; (ii) 7.5 per cent, of such amount as bears the same proportion to its total paid up equity share capita] as its total working funds in India bear to its total world working funds; (iii) 5 per cent, of such amount as bears the same proportion to its total disclosed reserves as its total working funds in India bear to its total world working funds; (iv) any sum which, in respect of the accounting year, is deposited by it with the Reserve Bank of India under sub-clause (ii) of clause (b) of sub- section. (2) of section 11 of the Banking Regulation Act, 1949 (10 of 1949), not exceeding the amount required under the afore-said provision to 12(2) The Payment of Bonus Rules, 1975 be so deposited.]