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NIKHITHA (Student) 02 September 2014
Sec.16-1A-In the first five accounting years following the accounting year in which the employer sells the goods produced or manufactured by him or renders services as the case may be, bonus shall be payable only in respect of the accounting year in which the employer derives profit and such bonus shall be calculated in accordandance with the provisions of the act. 1B-For Sixth and seventh accounting years in which the employer sells the goods produced or manufactured by him or render services taking into account the excess or deficiency, if any as the case may be, of the allocable surplus set on or set off in the year fifth and sixth accounting years. 1C-From the eighth accounting year Sec.15 shall apply -(a) he has made provisions for that year's depreciation to which he is entitled under the IT Actor as the case may be under the agricultural income tax law (b) the arrears of such depreciation and losses incurred by him in respect of the establishment for the previous accounting years have been fully set off against his profits.