General reserve
This query is : Resolved
anshul rampuria
(Querist)
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)
30 July 2013
-To reduce Income tax
-general reserves are saved to offset potential future losses.
-general reserves are saved to offset potential future losses.
30 July 2013
To the extent transfer is for dividend distribution it makes sense. But for that both are free
anshul rampuria
(Querist)
30 July 2013
Mr. Anbuselvam how can income tax be saved by transferring profit to general reserve??
Rupesh Jain
(Expert)
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.
profit tfr in general reserve after payment of tax not before the tax.
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