https://www.taxtmi.com/circulars?id=10187 Conversion of general reserve into bonus issue paid up capital does not increase the company's capital for surtax purposes because the Second Schedule treats paid up capital and the general reserve as components of capital on the first day of the relevant previous year; a transfer between those components is a compensating readjustment leaving total capital unchanged, and therefore the addition provided by Rule 3, which applies only where capital increases during the previous year, does not apply. en-us Mon, 27 May 1974 00:00:00 +0530 Sat, 11 Jun 2011 13:08:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/circulars?id=10187 Conversion of general reserve into bonus issue paid up capital does not increase the company's capital for surtax purposes because the Second Schedule treats paid up capital and the general reserve as components of capital on the first day of the relevant previous year; a transfer between those components is a compensating readjustment leaving total capital unchanged, and therefore the addition provided by Rule 3, which applies only where capital increases during the previous year, does not apply. Circulars Income Tax Mon, 27 May 1974 00:00:00 +0530 https://www.taxtmi.com/circulars?id=10187