law: Payment of Bonus Act, 1965 
  7. Calculation of direct tax payable by the employer 
   12  [Any direct tax payable by the employer for any accounting
  
  year shall, subject to the following provisions, be calculated at the rates
  
  applicable to the income of the employer for that year, namely,- 
  (a) in calculating such tax no account shall be taken of,- 
  ( i ) any loss
  
  incurred by the employer in respect of any previous accounting year and carried
  
  forward under any law for the time being in force relating to direct taxes;
  (ii) any arrears of depreciation which the
  
  employer is entitled to add to the amount of the allowance for depreciation for
  
  any following accounting year or years under sub-section (2) of section 32 of
  
  the Income Tax Act;
  (iii) any exemption conferred on the employer
  
  under section 84 of the Income Tax Act or of any deduction to which he is
  
  entitled under sub-section (1) of section 101 of that Act, as in force
  
  immediately before the commencement of the Finance Act, 1965 (10 of 1965);
  (b) Where the employer is a religious or a charitable
  
  institution to which the provisions of section 32 do not apply and the whole or
  
  any part of its income is exempt from tax under the Income Tax Act, then, with
  
  respect to the income so exempted, such institution shall be treated as if it
  
  were a company in which the public are substantially interested within the
  
  meaning of that Act;
  (c) where the employer is an individual or a Hindu Undivided
  
  Family, the tax payable by such employer under the Income Tax Act shall be
  
  calculated on the basis that the income derived by him from the establishment
  
  is his only income;
  (d) where the income of any employer includes any profits and
  
  gains derived from the export of any goods or merchandise out of India and any
  
  rebate on such income is allowed under any law for the time being in force
  
  relating to direct taxes, then, no account shall be taken of such rebate;
  (e) no account shall be taken of any rebate 10[other
  
  than development rebate or investment allowance or development allowance] or
  
  credit or relief or deduction (not hereinbefore mentioned in this section) in
  
  the payment of any direct tax allowed under any law for the time being in force
  
  relating to direct taxes or under the relevant annual Finance Act, for the development
  
  of any industry.