Repealed or not in force · As amended up to 2026-08
1. Subject to the ot~her provisions contained in this Schedule, the capital of a company shall be the sum of the amounts, as on the Arst day of thc prcvious ycnr rclcvnnt to tho asrrcssmcnt ycar, of itn paid up share capital and of its reserve, if any, created under the proviso (b) to clause (vib) of sub-sectfon (2) of section 10 of the Indian `11 1922.` Income-tax Act, 1922 or under sub-section (3) of section [34 ] of the[43 ][of ][1961 ] Incolme-tax Act, 1961, and of its other reserves `in` so far as the amounts credited to such other reserves have not been allowed in computing its profits for the purposes of the Indian Income-tax Act, 1922 or the Income-tax Act, 1961 diminished by the amount by which the cost ~ it of the assets the income from which in accordance with clause (iii) or clause (vi) or clause (viii) of rule 1 of the First
- - - . ---- Sshedu-l+ is not includible `in` its- chargeable profits, -exceeds the- . - 1 - ----aggregate of' (i) any money borrowed by it which remains oufstanding; and
(ii) the amount of any fund, any surplus and m y[si~ck ] reserve as is not to be taken into account in computing the capital under this rule.
Explanation 1.-A paid up share capit'al cr reserye brought into existence by creating or increasing (by revaluation or otherwise) any book asset is not capital for computing the capital of a company for the purposes of this Act.
Expldnation 2.-Any premium received in cash by the company on the issue of its shares standing t.n the credit af the share premium account shall be regarded as forming part of its paid up share capital. Explanation 3.-Where a company has different previous years in respect of its income, profits and gains, the computation of capital under rule 1 and rule 2 of this Schedule shall be made with reference to the previous year which commenced first.
|||||||||OF19631|19631|."-+<br>L.<br>SuperProfitsTax<br>;j.<br>I49||
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|.......|-.<br>.......|-.<br>..|!<br><br>8|!-.<br>.|....|..<br>----..--~.-.-.-.-I..y-.+-~.-.--.~<br>. . . . . . . . . . . . . .<br>.....................<br>.-<br>........<br>........"|||. . . . . . . . . . . . . .:|.<br>.<br>i<br>.<br>.........-...<br>I<br>=,-..-.-.(xii-) in ..the,.case-.ofa-,banking-axnp.aayY-f.,<br>..--...,..'...<br>:<br>. . .<br>.<br>.<br>.<br>.<br>..............<br>(a).aEy..su.m'.which.during.<br>.p.l'eviou.sy.ear'<br>..............<br>1s-|. . . . . , . , , ,<br>._<br>. . . . . . . . . . .|
||||||10of||of1949.|. .||transferred'by it to a reserve fund under sub-section(I)<br>of section17of the Banking Companies Act,1949or is||
|||||||||||deposited by it with the Reserve Bank02Iqdia under||
|||||||||||sub-clause (ii) of clause(b)of sub-section(2)of sec-||
|||||||||||tion11of that Act, not exceeding the amount required||
|||||||||||under the aforesaid provisions to be so transferred or||
|||||||||||deposited, as the case may be, or||
|||||||||||(b) any sum transferred by it during the previous||
|||||||||||year to any reserves in India including reserves<br>not||
|||||||||||shown as such in its published balance sheet in so far||
|||||||||||as the sums transferred to such reserves are attrjbutable||
|||||||||||to income chargeable to tax under the Income-tax Act||
|||||||||||and have not been allowed as a deduction in computing||
|||||||||||its total income under that Act and in so far as the||
|||||||||||aggregate02such sums does not exceed the highest of||
|||||||||||the aggregate of such sums, if any, so transferred during||
|||||||||||any one of the three years prior to the previ~us year,||
||||||||||whichever is higher;|||
|||||||||||(xiii) the amount of any deduction from the income-tax||
||||||||||and super-tax chargeable on the total income allowed under|||
||||||||||the annual Fihance Act in connection with export of any|||
||||||||||goods or merchandise out of India or the sale by a manu-|||
||||||||||facturer of anyarticle,^to any person who exports them out|||
||||||||||ofIndia.|||
Source: India Code