"34. Subject to the provisions of section 31A, 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 contract of service.".
24. Section 37 of the principal Aot shall be omitted.
Substitution of new section for section U.
Effect of laws and agreements inconsistent with the Act.
Omission of section
37.
636 THE GAZETTE OF INDIA EXTRAORDINARY [PART II—
25. In section 38 of the principal Act, in sub-section (3),—>
(a) for the words ''or in two successive sessions", the words "or in two or more successive sessions" shall be substituted;
(b) for the words "in which it is so laid or the session immediately following", the words "immediately following the session or the successive sessions aforesaid" shall be substituted.
Amendment of section
38.
26. The First Schedule to the principal Act shall be omitted.
27. In the Second Schedule to the principal Act,—
(a) for the heading "THE SECOND SCHEDULE", the heading "THE FIRST SCHEDULE" shall be substituted;
(b) for the sub-heading "[See section 4(b)]", the sub-heading "(See section 4)" shall be substituted;
(c) in Item 3, after sub-item (a), the following sub-item shall be inserted, namely: — "(aa) 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.";
(d) in Item 6, for subaltern (g), the following sub-item shall be substituted, namely: — "(g[) Cash subsidy, if any, given by the Government or by any body 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.";
(e) before the foot-notes, the following Explanation shall be inserted, namely :^ '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.'.
Omission of the First Schedule.
Amendment of the Second Schedule.
28. In the Third Schedule to the principal Act,—
(a) for ihe heading "THE THIRD SCHEDULE", the heading "THE SECOND SCHEDULE" shall be substituted;
(b) in Item 1, in column (2), the words ", other than a banking company" shall be omitted;
(c) Item 2 and the entries relating thereto shall be omitted;
(d) in the Explanation, the figures and brackets ", 2 {Hi)" shall be omitted.
Amendment of the Third Schedule.
SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY 637
29. For the Fourth Schedule to the principal Act. the following Schedule shall be substituted, namelv:—• Substitution of new Schedule for the Fourth Schedule.
' T H E T H I R D SCHEDULE (See sections 10, 15 and 16) The illustration in this Schedule has been worked out with reference to an establishment which has an annual salary or wage bill of rupees one lakh, twenty per cent, of which amounts to Rs. 20,000 arid four per cent, of which bmounts to ~Rs. 4,000.
Year Ci) 1 , 2 .
3- 4- 5-
6.
7-
8.
9- 1 0 .
1 1 .
Amount equal to sixty per cent, or sixty-seven per cent., as the case may be, of available surplus allocable as bonus ( 2 ) (Rs.)
42,000 Nil 10,000 1 0 1 0 0 Nil 27,890 Nil 25,000 15,100 Nil 'Set on' or 'set off' of the preceding year
(3) (Rs.)
+3,ooo(a) +20,000 Nil Nil —3,9 9o - 7,890 —7,890 Nil Nil +5)«x> + 100 Amount paid or payable as bonus
(4) (Rs.)
20,000 20,000 10,000 4,000 4,000 Nil 20,000 Nil 20,000 20,000 4,000 Balance of 'sei on' or 'set off1
(5) (Rs.)
+20,000 (b) Nil Nil —3J99O —7J89O -7.890 Nil Nil + 5,000 + 100 —3,900 NOTES .—-r. The notation " + " denotes 'set on' and the notation "—" denotes 'set off',
2. t f(a)" represents the amount 'set OD' as calculated under the provisions of this Act as it stood immediately before the commencement of the Payment of Bonus (Amendment) Ordinance, 1975.
"(b)" represents the maximum amount to be 'set on' under section 15.'.
30. In sub-section (3) of section 36 of the Income-tax Act, 1961, in the proviso to clause (ii), for the words "Provided that the amount of the bonus or commission", the words "Provided further that the amount of the bonus (not being bonus referred to in the first proviso) or commission" shall be substituted and before that proviso as so amended, the following proviso shall be inserted, namely: — "Provided that the deduction in respect of bonus paid to an employee employed in a factory or other establishment to which the provisions of the Payment of Bonus Act, 1965 apply shall not exceed the amount of bonus payable under that Act.".
Amendment of section 38 of the Income-tax Act.
43 of 1961.
21 of
196S.
31. For the removal of doubts, it is hereby declared that notwithstanding the amendments made to the principal Act by this Ordinance-, the provisions of the principal Act as they stood from time to time before Saving.
638 THE GAZETTE OF INDIA EXTRAORDINARY [PART II—SEC. 1] the commencement of this Ordinance shall apply and continue to apply to and in relation to the payment of bonus in respect of any accounting year preceding the accounting year commencing on any day in the year
1974.
FAKHRUDDIN ALI AHMED, President.
K K. SUNDARAM, Secy, to the Govt. of India.
WONTED BY tHK GENERAL MANAGER, GOVERNMENT OF INDIA PRESS, MINTO ROAD NEW DELHI AND PUBLISHED BY THE CONTROLLER OF PUBLICATIONS, DELHI, 1075