Schedule D

[See rule 25]

Item Category of

Further sums to be deducted

No. employer

1 2 3

1. Company, (i) The dividends payable on its preference share capital for the accounting

other than a year calculated at the actual rate at which such dividends are payable;

banking

(ii) 8.5 percent of its paid up equity share capital as at the commencement of

company.

the accounting year;

(iii) 6 percent 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 2 (42) of the Companies Act ,2013 (18 of 2013) , the

total amount to be deducted under this item shall be 8.5 percent 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

otherwise or any interest paid by the company to its Head Office ) in

India.

2. Banking

(i) The dividends payable on its preference share capital for the accounting

company

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 commencement

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 company is a foreign company

within the meaning of section 2 (42) of the Companies Act , 2013 (18

of 2013 ), 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 capital as its total working funds in

India bear to its total 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

aforesaid provision to be so deposited.]

1 2 3

3. Corporation (i) 8.5 per cent of its paid up capital as at the commencement of the accounting

year;

(ii) 6 per cent of its reserves, if any, shown in its balance sheet as at the

commencement of the accounting year, including any profits carried

forward from the previous accounting year.

4. Cooperative

(i) 8.5 per cent of the capital invested by such society in its establishment as

society

evidenced from its books of accounts at the commencement of the

accounting year;

(ii) such sums as has been carried forward in respect of the accounting year

to a reserve fund under any law relating to co-operative societies for the

time being in force.

5. Any other 8.5 per cent of the capital invested by him in his establishment as evidenced

employer

from his books of accounts at the commencement of the accounting year :

not falling

under any of Provided that where such employer is a person to whom Chapter XXII-A of

the aforesaid the income Tax Act applies , the annuity deposit payable by him under the

categories provisions of that Chapter during the accounting year shall also be deducted:

Provided further that where such employer is a firm, an amount equal to 25

per cent of the gross profits derived by it from the establishment in respect of

the accounting year after deducting depreciation in accordance with the

provisions of clause (a) of section 6 by way of remuneration to all the partners

taking part in the conduct of business of the establishment shall also be

deducted, but where the partnership agreement, whether oral or written,

provides for the payment of remuneration to any such partner, and

(i) the total remuneration payable to all such partners is less than the said 25

per cent the amount payable, subject to a maximum of forty-eight thousand

rupees to each such partner; or

(ii) the total remuneration payable to all such partners is higher than the said

25 per cent , such percentage, or a sum calculated at the rate of forty eight

thousand rupees to each such partner, whichever is less, shall be

deducted under this proviso: Provided also that where such employer is an

individual or a Hindu Undivided Family -

(i) an amount equal to 25 per cent of the gross profits derived by such

employer from the establishment in respect of the accounting year

after deducting depreciation in accordance with the provisions of

clause (a) of section 34; or

(ii) forty-eight thousand rupees, whichever is less by way of remuneration

to such employer, shall also be deducted.

Explanation : The expression "reserves" occurring in column (3) against Item Nos. 1(iii), 2(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;

(ii) meeting any depreciation admissible in accordance with the provisions of clause (a)

of section 34;

(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 specific 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 34.