Section 47: Presumption about accuracy of balance sheet and profit and loss account of corporations and companies
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.
Statutory identity
What the provision requires
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.
Implementation control: Keep audited accounts, auditor explanations and bonus computation reconciliations ready for production.
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.
Provision map — subsection, clause and qualification
This map decomposes the section into its operative tests. Use the linked India Code text for exact numbering and wording.
Presumption
Audited balance sheet and profit-and-loss accounts of corporations/companies receive the statutory evidentiary treatment.
Clarification power
The deciding authority may still call for explanations.
Confidentiality/evidence
Prepare auditor-supported bridges without assuming accounts end every dispute.
Linked Code on Wages (Central) Rules, 2026
No direct section citation was detected in the text of the 2026 Central Rules. The section may still operate with another rule, notification or State rule; verify the rule-making clause and current official library.
Authority, form and filing map
Evidence pack
- claim/appeal forms and orders
- wage/bonus records and proof
- nomination/deposit records
- statutory registers and returns
Compliance consequence
Apply the specific claims, recovery, adjudication, penalty and appeal provisions; do not infer a penalty solely from the section heading.
Remedy path: identify the claims authority, appellate authority, adjudicating officer, Inspector-cum-Facilitator or criminal court applicable to the issue.
Worked example
Before acting on presumption about accuracy of balance sheet and profit and loss account of corporations and companies, the employer records the applicable Government, employee category, operative instrument, calculation or procedural step, reviewer approval and evidence of completion.
Illustrative only. Apply actual wage notifications, contracts, dates, State rules and evidence.
Practical Q&A
Can an employment contract override this section?
Not where the contract reduces a statutory entitlement. Sections 60 and 61 must be considered, including any more favourable award, agreement or contract.
What should be checked before payroll or HR action?
Confirm coverage, appropriate Government, operative rate/order, the exact subsection and proviso, linked rule, evidence, approval and payment/filing deadline.
Primary sources
India Code — exact Section 47 text ↗
India Code — official consolidated Act PDF ↗
Ministry of Labour — Codes, Rules, notifications and FAQs ↗
Last official-source review: 16 July 2026.