Section 34: Sums deductible from gross profits

What the provision requires

Lists the sums deductible from gross profit when computing available surplus.

Implementation control: Accept only statutory deductions and retain evidence for depreciation, development rebate/investment allowance, direct tax and permitted returns.

Provision-level reading sequence

• Read each subsection, clause, proviso and explanation in the official text.
• Apply section 2 definitions before testing the obligation or exception.
• Identify the appropriate Government and the applicable Central or State rule.
• Check commencement, section-specific notifications and saved predecessor-law instruments.
• Document the factual test and the evidence supporting the conclusion.

Evidence pack

• audited financial statements
• employee eligibility and attendance data
• gross/available/allocable surplus workbook
• set-on/set-off ledger and payment proof

Compliance consequence

Incorrect eligibility, computation or timing may create bonus arrears, claims, recovery and penalty exposure.

Remedy path: identify the claims authority, appellate authority, adjudicating officer, Inspector-cum-Facilitator or criminal court applicable to the issue.