Profit & Lass A/c vs General Reserve.
This query is : Resolved
03 September 2010
What are the rules for transfering profits to General Reserves other than the mandatory transfer in case of Dividends.
For all purposes, is the balance of Profit & Loss A/c in Shareholders Equity to be treated on par with General Reserves?
For all purposes, is the balance of Profit & Loss A/c in Shareholders Equity to be treated on par with General Reserves?
Manmohan ACA, CS
(Expert)
03 September 2010
Transfer to Reserve less then 10% NO CONDITION
Transfer to Reserve Exceeding 10%:
(A)
if co declared No Bonus in this/ immediately preceding 3 years - Rate of Dividend> Average rate of Div. in immediately preceding 3 years.
(B)
if co declared Bonus in this/ immediately
preceding 3 years AMOUNT of Dividend> Average AMOUNT of Div. in immediately preceding 3 years.
(C)
Company not declaring dividend : Amount proposed to be transferred to Reserve should be lee then average amount of Div. declared in immediately preceding 3 years.
Transfer to Reserve Exceeding 10%:
(A)
if co declared No Bonus in this/ immediately preceding 3 years - Rate of Dividend> Average rate of Div. in immediately preceding 3 years.
(B)
if co declared Bonus in this/ immediately
preceding 3 years AMOUNT of Dividend> Average AMOUNT of Div. in immediately preceding 3 years.
(C)
Company not declaring dividend : Amount proposed to be transferred to Reserve should be lee then average amount of Div. declared in immediately preceding 3 years.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Late Filing Fee Waiver for Q1 Form 144 (Earlier 27Q) – Transition to Income-tax Act, 2025
- GST input credit on commercial property
- GSTR-9C filing
- GST ITC as per notification 12/2023- central tax
- Urd purchase entry in tally prime
- IMS (import of goods) ITC related
- Applicability of tax on invoice
- Form 144 TDS Return Validation Error – Mandatory Fields
- Capital gains in IT returns
- TDS- 2026-27 Q1 Correction
- LLP audit and disclosure
- Subject: Legal Remedy for Removal of Income Tax Demand for AY 2024–25 – Charitable Trust
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Tally: Imported bank entries do not show up in manual reconciliation
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
