Subject to the other provisions contained in this Schedule, the capital of a company shall be the sum of the amounts, as on the first day of the previous year relevant to the assessment year, of its paid up share capital and of its reserve, if any, created under the proviso (b) to clause (vi b) of sub section (2) of section 10 of the Indian Income tax Act, 1922 (XI of 1922), or under sub section (3) of section 34 of the Income tax Act, 1961 (XLIII of 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 purpose of the Indian Income tax Act, 1922 (XI of 1922) or the Income tax Act, 1961 (XLIII of 1961), diminished by the amount by which the cost to 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 Schedule is not includible in its chargeable profits, exceeds the aggregate of (i) any money borrowed by it which remains outstanding, and (ii) the amount of any fund, any surplus and any such reserves is not to be taken into account in computing the capital under this rule.