Section 5:
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:
1[Provided that the available surplus in respect of the accounting year commencing on any day in
the year 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.]
Notes:
1. The proviso added by Act 8 of 1969, s. 2 (w.e.f. 26-3-1965).