General Reserve
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
17 September 2010
What is the reason behind transfer of Profit to General Reserve?
21 September 2010
Transfer to General reserve is regulated by THE COMPANIES (TRANSFER OF PROFITS TO RESERVES) RULES 1975 in India. Pls check this link https://www.mca.gov.in/Ministry/actsbills/rules/CToPtRR1975.pdf
IF DIVIDEND PROPOSED ARE :
- BETWEEN 10 TO 12.5% of the paid up capital - Transfer required is 2.5% of profits after tax
- BETWEEN 12.5 TO 15% of the paid up capital - Transfer required is 5% of profits after tax
- BETWEEN 15 TO 20% of the paid up capital - Transfer required is 7.5% of profits after tax
- OVER 20 % of the paid up capital - Transfer required is 10.00 % of profits after tax
IF DIVIDEND PROPOSED ARE :
- BETWEEN 10 TO 12.5% of the paid up capital - Transfer required is 2.5% of profits after tax
- BETWEEN 12.5 TO 15% of the paid up capital - Transfer required is 5% of profits after tax
- BETWEEN 15 TO 20% of the paid up capital - Transfer required is 7.5% of profits after tax
- OVER 20 % of the paid up capital - Transfer required is 10.00 % of profits after tax
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