Distinction between Allocable Surplus and Available Surplus : The term 'allocable' surplus is defined in Section 2 (4) of the payment of Bonus Act, 1965. It is the workers share in the available surplus. Available surplus means the available surplus computed under Section 5 of the Act.

What is allocable surplus?

(4) “allocable surplus” means- (a) in relation to an employer, being a company 3[(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.

What do you mean by available surplus and allocable surplus?

Meaning of "available surplus" and "allocable surplus"

The balance is called "available surplus". A percentage of the available surplus calculated in accordance with the provisions of sub-section (4) of section 2 is called "allocable surplus."