General reserve

This query is : Resolved

anshul rampuria (Querist)
Follow

29 July 2013 I just want to know that why we transfer profit from P&L a/c to general reserve As the both are free reserve??

Anbuselvam (Expert)
Follow

30 July 2013 -To reduce Income tax
-general reserves are saved to offset potential future losses.

Kumar (Expert)
Follow

30 July 2013 To the extent transfer is for dividend distribution it makes sense. But for that both are free

anshul rampuria (Querist)
Follow

30 July 2013 Mr. Anbuselvam how can income tax be saved by transferring profit to general reserve??

Rupesh Jain (Expert)
Follow

31 July 2013 tfr to general reserve no way to save of tax
profit tfr in general reserve after payment of tax not before the tax.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Unanswered Queries

view all classess