Profit Bonus - Law Dictionary Search Results
Profit bonus
Profit bonus, a profit bonus is strictly not wages, at least not for the purpose of computing liability to income-tax; it is not an expense in the ordinary sense of the term, incurred for the purpose of earning profits. A fortiorari profits have already been made. It is more like sharing of profits on the basis of a certain formula, CIT v. Swadeshi Cotton and Flour Mills (P) Ltd., AIR 1964 SC 1766 (1769). [Income-tax Act, 1961, s. 36(i)(ii)]...
Bonus
Bonus, premium or advantage; an occasional extra dividend; a gratuity. As to the respective rights of tenant for life and remaindermen in a bonus declared by a company, see Bouch v. Sproule, (1887) 12 App Cas 385; Re Northage, (1891) 60 LJ Ch 488, and see Palmer's Company Law, 15th Edn., 228.Means a premium paid in addition to what is due or expected e.g. year end bonus. In the employment context, worker's bonuses are not a gift or gratuity; they are paid for services or on consideration in addition or in excess of the compensation that would ordinarily be given; a payment made to the lessee for the execution of an oil-and-gas lease, the lessee received a large bonus at closing, Black Law Dictionary, 7th Edn., p. 176.Bonus is not, as its etymological meaning would suggest, a mere matter of bounty gratuitously made by the employer to his employees; nor is it a matter of deferred wages. It has been held by this Court in Muir Mills Co. Ltd. v. Suti Mills Mazdoor Union, Kanpur, (1955) 1 SC...
Bonus shares
Bonus shares, bonus share is an accretion. A bonus share is issued when the company capitalises its profits by transferring an amount equal to the face value of the share from its reserve to the nominal capital. In other words the undistributed profit of the company is retained by the company under the head of capital against the issue of further shares to its shareholders. Bonus shares have, therefore, been described as a distribution of capitalised undivided profit, Standard Chartered Bank v. Custodian, (2000) 6 SCC 427: AIR 2000 SC 1488 (1499). [Companies Act, 1956 Sch I, Table A, Rr. 96 (97)]...
Capitalisation
Capitalisation, the profits of a Company can be capitalised in accordance with the Articles of Association and the law. On the capitalisation of the profits they cease to be profits in the hands of the Company. The nature of the asset is changed although it does not make any difference in the total assets of the Company. But profits stands transmuted and transformed into capital. The most common example of capitalisation of profits is by issuance of bonus shares to the shareholders, P.K. Badiani v. C.I.T., AIR 1977 SC 560 (565): (1976) 4 SCC 502....
gainsharing
gainsharing : incentive-based compensation that ties wage increases or bonuses to increased productivity rather than profit increases ...
Direct tax
Direct tax, means:(a) any tax chargeable under--(i) the Income-tax Act;(ii) the Super Profits Tax Act, 1963;(iii) The Companies (Profits) Surtax Act, 1964;(iv) the agricultural income-tax law; and(b) any other tax which, having regard to its nature or incidence, maybe declared by the Central Government, by notification in the Official Gazette, to be a direct tax for the purposes of this Act. [Payment of Bonus Act, 1965 (21 of 1965), s. 2 (12) (a)]...
Accounting year
Accounting year, means-(i) in relation to a corporation, the year ending on the day on which the books and accounts of the corporation are to be closed and balanced; (ii) in relation to a company, the period in respect of which any profit and loss account of the company laid before it in annual general meeting is made up, whether that period is a year or not; (iii) in any other case-(a) the year commencing on the 1st day of April; or (b) if the accounts of an establishment maintained by the employer thereof are closed and balanced on any day other than the 31st day of March, then, at the option of the employer, the year ending on the day on which its accounts are so closed and balanced: Provided that an option once exercised by the employer under paragraph (b) of this sub-clause shall not again be exercised except with the previous permission in writing of the prescribed authority and upon such conditions as that authority may think fit. [Payment of Bonus Act, 1965 (21 of 1965), s. 2 (...
Allocable surplus
Allocable surplus, means-(a) in relation to an employer, being a company other than a banking company which has not made the arrangements prescribed under the Income-tax Act for the declaration and payment within India of the dividends payable out of its profits in accordance with the provisions of s. 194 of that Act, sixty-seven per cent of the available surplus in an accounting year. (b) In any other case, sixty per cent of such available surplus. [Payment of Bonus Act, 1965 (21 of 1965), s. 2 (4)]...
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