Dividends ‑ Declaration of ‑ Transfer to reserves of certain percentage of profits - Companies Law - Circular: No. 21/76

Circular: No. 21/76 [8/30/(205A)/75 ‑ CL ‑ V], dated 19 ‑ 7 ‑ 1976. Subject:- Dividends ‑ Declaration of ‑ Transfer to reserves of certain percentage of profits Enquiries have been made in regard to the clarification of the term reserves mentioned in the Transfer of Profits to Reserves Rules framed in pursuance of section 205(2A). The matter has been examined and the Department is of the view that the term reserves referred to in the said Rules means only free reserves .