law: Payment of Bonus Act, 1965 
  15. Set on and set off of allocable surplus 
  
  
  (1) Where for any accounting year, the allocable surplus exceeds
  
  the amount of maximum bonus payable to the employees in the establishment under
  
  section 11, then, the excess shall, subject to a limit of twenty per cent of
  
  the total salary or wages of the employees employed in the establishment in
  
  that accounting year, be carried forward for being set on in the succeeding
  
  accounting year and so on up to and inclusive of the fourth accounting year to
  
  be utilized for the purpose of payment of bonus in the manner illustrated in
  
  the Fourth Schedule.
  (2) Where for any accounting year, there is no available surplus
  
  or the allocable surplus in respect of that year falls short of the amount of
  
  minimum bonus payable to the employees in the establishment under section 10,
  
  and there is no amount or sufficient amount carried forward and set on under
  
  sub-section (1) which could be utilized for the purpose of payment of the minimum
  
  bonus, then such minimum amount or the deficiency, as the case may be, shall be
  
  carried forward for being set off in the succeeding accounting year and so on
  
  up to and inclusive of the fourth accounting year in the manner illustrated in
  
  the Fourth Schedule.
  (3) The principle of set on and set off as illustrated in the
  
  Fourth Schedule shall apply to all other cases not covered by sub-section (1)
  
  or sub-section (2) for the purpose of payment of bonus under this Act.
  (4) Where in any accounting year any amount has been carried
  
  forward and set on or set off under this section, then, in calculating bonus
  
  for the succeeding accounting year, the amount of set on or set off carried
  
  forward from the earliest accounting year shall first be taken into account.]