According to Section 73, a company shall, before 30th April of each year, transfer a sum which shall not be less than 20% of the amount of it's deposits maturing during the following financial year, in a separate bank account to be called deposit repayment reserve account.
Eg - In the FY 2019-20, the maturing deposits are of Rs. 70 lakh and in the FY 2020-21, the maturing deposits are of Rs. 30 lakh.
My question is : What amount would be transferred during both the years?
Talking about FY 2019-20, would it be 20% of (70+30) lakh or 20% of 70 lakh.
Answer please.
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Section 73
Replies (2)
The Co. is required to deposit, on or before 30th of April each year, at least 20% of the amount of its deposits maturing during the following financial year.
So if in the FY 2020-21 the deposits maturing amount is 100 cr then the amount will be 20 Lakh. And if the deposits maturing amount is 30 lakh then the amount will be 6 lakh.
As clearly written in the section that the deposits maturing during the following FY that amount need to transfer the account called deposit repayment reserve account.
So if in the FY 2020-21 the deposits maturing amount is 100 cr then the amount will be 20 Lakh. And if the deposits maturing amount is 30 lakh then the amount will be 6 lakh.
As clearly written in the section that the deposits maturing during the following FY that amount need to transfer the account called deposit repayment reserve account.
Okay.. Thank you
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