Section 47: Presumption about accuracy of balance sheet and profit and loss account of corporations and companies
Reviewed by Finin2min Editorial Desk · Last reviewed 30 August 2026
Creates a presumption regarding audited balance sheets and profit-and-loss accounts of corporations and companies, subject to the authority's power to call for clarification.
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
- (1) Where, during the course of proceedings before— (a) the authority under section 45; or (b) the appellate authority under section 49; or (c) a Tribunal; or (d) an arbitrator referred to in clause (aa) of section 2 of the Industrial Disputes Act, 1947 (14 of 1947), in respect of any dispute of the nature specified in sections 45 and 46 or in respect of an appeal under section 49, the balance sheet and the…
- Provided that where the said authority, appellate authority, Tribunal or arbitrator, as the case may be, is satisfied that the statements and particulars contained in the balance sheet or the profit and loss account of the corporation or the company are not accurate, it may take such steps as it thinks necessary to find out the accuracy of such statements and particulars.
- (2) When an application is made to the authority, appellate authority, Tribunal or arbitrator, as the case may be, referred to in sub-section (1), by any Trade Union being a party to the dispute or as the case may be, an appeal, and where there is no Trade Union, by the employees being a party to the dispute, or as the case may be, an appeal, requiring any clarification relating to any item in the balance sheet…
Provisos, explanations & qualifications
- Provided that where the said authority, appellate authority, Tribunal or arbitrator, as the case may be, is satisfied that the statements and particulars contained in the balance sheet or the profit and loss account of the corporation or the company are not accurate, it may take such steps as it thinks necessary to find out the accuracy of such…
Thresholds and timelines in the text
- No explicit day/month/year/hour/percentage/rupee expression was detected in this section text.
Actors expressly appearing in the text
Employer, Employee / worker, Authority / officer, Trade union, Tribunal, Corporation / EPFO / Board
Full statutory text — Section 47
47. Presumption about accuracy of balance sheet and profit and loss account of corporations
and companies.—(1) Where, during the course of proceedings before—
(a) the authority under section 45; or
(b) the appellate authority under section 49; or
(c) a Tribunal; or
(d) an arbitrator referred to in clause (aa) of section 2 of the Industrial Disputes Act, 1947 (14 of
1947),
in respect of any dispute of the nature specified in sections 45 and 46 or in respect of an appeal under
section 49, the balance sheet and the profit and loss account of an employer, being a corporation or a
company (other than a banking company), duly audited by the Comptroller and Auditor-General of
India or by auditors duly qualified to act as auditors of companies under section 141 of the
Companies Act, 2013 (18 of 2013), are produced before it, then, the said authority, appellate
authority, Tribunal or arbitrator, as the case may be, may presume the statements and particulars
contained in such balance sheet and profit and loss account to be accurate and it shall not be
necessary for the corporation or the company to prove the accuracy of such statements and particulars
by the filing of an affidavit or by any other mode:
Provided that where the said authority, appellate authority, Tribunal or arbitrator, as the case may be,
is satisfied that the statements and particulars contained in the balance sheet or the profit and loss account
of the corporation or the company are not accurate, it may take such steps as it thinks necessary to find
out the accuracy of such statements and particulars.
(2) When an application is made to the authority, appellate authority, Tribunal or arbitrator, as the
case may be, referred to in sub-section (1), by any Trade Union being a party to the dispute or as the case
may be, an appeal, and where there is no Trade Union, by the employees being a party to the dispute, or
as the case may be, an appeal, requiring any clarification relating to any item in the balance sheet or the
profit and loss account, then such authority, appellate authority, Tribunal or arbitrator, may, after
satisfying itself that such clarification is necessary, by order, direct the corporation or, as the case may be,
the company, to furnish to the Trade Union or the employees such clarification within such time as may
be specified in the direction and the corporation or, as the case may be, the company, shall comply with
such direction.How to apply this provision
- Primary statutory test — (1) Where, during the course of proceedings before— (a) the authority under section 45; or (b) the appellate authority under section 49; or (c) a Tribunal; or (d) an arbitrator referred to in clause (aa) of section 2 of the Industrial Disputes Act, 1947 (14 of 1947), in respect of any dispute of the nature specified in sections 45 and 46 or in respect of an appeal under section 49, the balance sheet and the…
- Additional operative limb — Provided that where the said authority, appellate authority, Tribunal or arbitrator, as the case may be, is satisfied that the statements and particulars contained in the balance sheet or the profit and loss account of the corporation or the company are not accurate, it may take such steps as it thinks necessary to find out the accuracy of such statements and particulars.
- Qualification / exception to test — Provided that where the said authority, appellate authority, Tribunal or arbitrator, as the case may be, is satisfied that the statements and particulars contained in the balance sheet or the profit and loss account of the corporation or the company are not accurate, it may take such steps as it thinks necessary to find out the accuracy of such…
- Evidence file — retain facts and records proving the role/status of: Employer, Employee / worker, Authority / officer, Trade union, Tribunal, Corporation / EPFO / Board.
Rules, forms and cross-references
Direct 2026 Central Rule mapping
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 presumption about accuracy of balance sheet and profit and loss account of corporations and companies 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: “(1) Where, during the course of proceedings before— (a) the authority under section 45; or (b) the appellate authority under section 49; or (c) a Tribunal; or (d) an arbitrator referred to in clause (aa) of section 2 of the Industrial Disputes Act, 1947 (14 of 1947), in respect o” Also test the express qualification/proviso before concluding the result.
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 47
What does Section 47 of the Code on Wages cover?
Creates a presumption regarding audited balance sheets and profit-and-loss accounts of corporations and companies, subject to the authority's power to call for clarification.
What is the main legal requirement or power in Section 47?
The first operative clause identified from the official text is: “(1) Where, during the course of proceedings before— (a) the authority under section 45; or (b) the appellate authority under section 49; or (c) a Tribunal; or (d) an arbitrator referred to in clause (aa) of section 2 of the Industrial Disputes Act, 1947 (14 of 1947), in respect of any dispute of the nature specified in sections 45 and 46 or in respect of an appeal under section 49, the balance sheet and the…” Read it with the remaining subsections and any proviso below.
Does Section 47 contain a proviso or explanation?
Yes. A qualification extracted from the official text is: “Provided that where the said authority, appellate authority, Tribunal or arbitrator, as the case may be, is satisfied that the statements and particulars contained in the balance sheet or the profit and loss account of the corporation or the company are not accurate, it may take such steps as it thinks necessary to find out the accuracy of such…”
What time limit, percentage or amount appears in Section 47?
No explicit day/month/year/hour/percentage/rupee expression was detected in the official section text.
Which 2026 Central Rules are linked to Section 47?
No direct Central Rule is recorded in the current concordance. That does not exclude a relevant scheme, notification, State rule or enabling provision.
Is Section 47 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.