Section 32: Computation of gross profits
Reviewed by Finin2min Editorial Desk · Last reviewed 30 August 2026
Requires gross profit to be computed in the prescribed manner for banking and non-banking establishments.
Principal remaining provisions commenced on 21 November 2025 under S.O. 5322(E), read with the earlier partial commencement; check section-specific footnotes in the current India Code text.
Provision / India Code ↗ · Official Act PDF ↗ · 2026 Central Rules ↗
Finin2min analysis — what the section actually does
Operative clauses
- The gross profits derived by an employer from an establishment in respect of the accounting year shall,— (a) in the case of a banking company, be calculated in the manner as may be prescribed by the Central Government;
- (b) in any other case, be calculated in the manner as may be prescribed by the Central Government.
Provisos, explanations & qualifications
- No proviso/explanation was separately extracted from this section text.
Thresholds and timelines in the text
- Computation of gross profits.—The gross profits derived by an employer from an establishment in respect of the accounting year shall,— (a) in the case of a banking company, be calculated in the manner as may be prescribed by the Central Government;
Actors expressly appearing in the text
Employer, Central Government
Full statutory text — Section 32
32. Computation of gross profits.—The gross profits derived by an employer from an establishment
in respect of the accounting year shall,—
(a) in the case of a banking company, be calculated in the manner as may be prescribed by the
Central Government;
(b) in any other case, be calculated in the manner as may be prescribed by the Central
Government.How to apply this provision
- Primary statutory test — The gross profits derived by an employer from an establishment in respect of the accounting year shall,— (a) in the case of a banking company, be calculated in the manner as may be prescribed by the Central Government;
- Additional operative limb — (b) in any other case, be calculated in the manner as may be prescribed by the Central Government.
- Numerical or timing control — Computation of gross profits.—The gross profits derived by an employer from an establishment in respect of the accounting year shall,— (a) in the case of a banking company, be calculated in the manner as may be prescribed by the Central Government;
- Central Rule mapping — 24, 25. Read the mapped provision together with this text rather than treating the concordance as a substitute for it.
- Evidence file — retain facts and records proving the role/status of: Employer, Central Government.
Rules, forms and cross-references
Forms mapped
No prescribed form is directly mapped in the current concordance.
Other sections cited in this text
Related Labour Hub resources
A direct concordance is not exhaustive. Central/State jurisdiction, schemes, authority appointments, saved instruments and later notifications may change the practical route without changing the section wording.
Worked example
An employer configuring payroll for computation of gross profits should first identify the employee and wage period, then apply the exact provision and any linked rule. The system rule should be tested against a sample payslip and bank/payment record. A text point to test is: “Computation of gross profits.—The gross profits derived by an employer from an establishment in respect of the accounting year shall,— (a) in the case of a banking company, be calculated in the manner as may be prescribed by the Central Government;” Read the mapped Central Rule(s) 24, 25.
Illustration only; it is not statutory text or a substitute for applying the actual facts, jurisdiction, current rule/scheme and official instrument.
Q&A — Section 32
What does Section 32 of the Code on Wages cover?
Requires gross profit to be computed in the prescribed manner for banking and non-banking establishments.
What is the main legal requirement or power in Section 32?
The first operative clause identified from the official text is: “The gross profits derived by an employer from an establishment in respect of the accounting year shall,— (a) in the case of a banking company, be calculated in the manner as may be prescribed by the Central Government;” Read it with the remaining subsections and any proviso below.
Does Section 32 contain a proviso or explanation?
No standalone proviso or explanation was extracted from this section text. Check the full text below for clause-level qualifications.
What time limit, percentage or amount appears in Section 32?
The provision contains this numerical/time expression: “Computation of gross profits.—The gross profits derived by an employer from an establishment in respect of the accounting year shall,— (a) in the case of a banking company, be calculated in the manner as may be prescribed by the Central Government;” Apply it only in the clause and context in which it appears.
Which 2026 Central Rules are linked to Section 32?
The current concordance maps Section 32 to Central Rule(s) 24, 25.
Is Section 32 currently operative?
Principal remaining provisions commenced on 21 November 2025 under S.O. 5322(E), read with the earlier partial commencement; check section-specific footnotes in the current India Code text.
Source & verification trail
Act: Code on Wages, 2019 — official India Code PDF ↗
Central Rules: Code on Wages (Central) Rules, 2026 — G.S.R. 343(E), 8 May 2026 ↗
Official library: Ministry of Labour & Employment — Labour Codes ↗
Source check: 20 August 2026. Individual professional interpretation should be re-reviewed when the section, rules, notification, scheme, State overlay or controlling judgment changes.