https://www.taxtmi.com/circulars?id=10906 No transfer to reserves is required where the dividend declared does not exceed a de minimis rate; for dividends above that de minimis rate and up to the higher specified threshold a prescribed percentage of current profits must be compulsorily transferred to reserves under Rule 2. Transfers in excess of the basic threshold require compliance with the procedural and conditional provisions of Rule 3, which is consistent with the parent statutory purpose and has been reworded by amendment to effect a balance between capital formation and equitable shareholder return. en-us Tue, 03 Aug 1976 00:00:00 +0530 Fri, 17 Jun 2011 16:52:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/circulars?id=10906 No transfer to reserves is required where the dividend declared does not exceed a de minimis rate; for dividends above that de minimis rate and up to the higher specified threshold a prescribed percentage of current profits must be compulsorily transferred to reserves under Rule 2. Transfers in excess of the basic threshold require compliance with the procedural and conditional provisions of Rule 3, which is consistent with the parent statutory purpose and has been reworded by amendment to effect a balance between capital formation and equitable shareholder return. Circulars Companies Law Tue, 03 Aug 1976 00:00:00 +0530 https://www.taxtmi.com/circulars?id=10906