Schedule C

Computation of Gross Profits

[(See rule 24]

Accounting year ending…………….....................................................................

Amount of Amount of

Item

Particulars sub-Items main Items Remarks

No.

` `

1 2 3 4 5

1. Net profit as per profit and loss account

2.

Add back provision for :

(a) Bonus to employees

(b) Depreciation.

(c) Direct taxes, including the provision See foot-note (1)

(if any), for previous accounting

years See foot-note (1)

(d) Development rebate / investment

allowance / development allowance

reserve.

(e) Any other reserves

Total of Item No.2……..

`……………

3.

Add back also :

(a) Bonus paid to employees in

respect of previous accounting

years.

(aa) The amount debited in

See foot-note (1)

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.

(b) Donations in excess of the amount

admissible for income-tax.

(c) Any annuity due, or commuted

value of any annuity paid, under

the provisions of section 280D of

the Income Tax Act during the

accounting year.

(d) Capital expenditure (other than

capital expenditure on scientific

research which is allowed as a

See foot-note (1)

deduction under any law for the

time being in force relating to direct

taxes) and capital losses (other

than losses on sale of capital

assets on which depreciation has

been allowed for income tax or

agricultural income-tax.).

(e) Losses of, or expenditure relating

to, any business situated outside

`……………

India. Total of Item No.3………..

1 2 3 4 5

4.

Add also income, profits or gains (if

any) credited directly to reserves, other

than-

(i) capital receipts and capital profits

(including profits on the sale of

capital assets on which

depreciation has not been

allowed for income-tax or

agricultural income-tax);

(ii) profits of, and receipts relating to,

any business situated outside

India;

(iii) income of foreign concerns from

investments outside India. Net

total of Item No.4…….. `……………

5. Total of Item Nos. 1, 2, 3 and 4… `……………

6. Deduct :

(a) Capital receipts and capital profits

(other than profits on the sale of

assets on which depreciation has

been allowed for income-tax or

agricultural income-tax).

(b) Profits of, and receipts relating to,

any business situated outside

India.

See foot-note (2)

(c) Income of foreign concerns from

investment outside India.

(d) Expenditure or losses (if any ) See foot-note (2)

debited directly to reserves, other

than-

(i) capital expenditure and capital

losses (other than losses on

sale of capital assets on which

depreciation has not been

allowed for income-tax;

or agricultural income-tax;

(ii) losses of any business

situated outside India.

(e) In the case of foreign concerns

See foot-note (3)

proportionate administrative

(overhead) expenses of head office

allocable to Indian business.

(f) Refund of any direct tax paid for

previous accounting years and

See foot-note (2)

excess provision, if any, of

previous accounting years relating

to bonus, depreciation, taxation or

development rebate or

development allowance, if written

back.

(g) Cash subsidy, if any, given by the

government or by anybody

corporate established by any law

for the time being in force or by any

other agency through budgetary

grants, whether given directly or

through any agency for specified

purposes and the proceeds of

which are reserved for such

purposes. Total of Item No.6 `……………

Gross Profits for purposes of bonus

7. `……………

(Item No.5 minus Item No.6 )

Explanation : In sub-item (aa) of Item 3, "approved gratuity fund" has the same meaning assigned to it

in clause (5) of section 2 of the Income Tax Act, 1961.

Foot-notes :

(1) If, and to the extent, charged to Profit and Loss Account.

(2) If, and to the extent, credited to Profit and Loss Account.

(3) In the proportion of Indian Gross Profit (Item No. 7) to Total World Gross Profit (as per consolidated

Profit and Loss Account, adjusted as in Item No. 2 above only).