https://www.taxtmi.com/caselaws?id=19696 Under the surtax capital computation scheme, the true character of each item determines whether it is a reserve or a provision; amounts representing real reserves are includible, while liabilities and specific provisions are excluded. Forfeited dividends are excluded from capital base, whereas contingency reserve and reserve for doubtful debts may be included if not created for a specific liability. Excess provisions for taxation, and the treatment of proposed dividend, dividend equalisation reserve and exchange difference reserve, depend on the controlling precedent applied to the item. Shares whose income is required to be excluded from chargeable profits are excluded from capital base even if no dividend was earned in the relevant year, and bonus share and reserve adjustments follow the governing capital computation precedent. en-us Thu, 12 Nov 1992 00:00:00 +0530 Mon, 09 Nov 2009 10:38:37 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=19696 Under the surtax capital computation scheme, the true character of each item determines whether it is a reserve or a provision; amounts representing real reserves are includible, while liabilities and specific provisions are excluded. Forfeited dividends are excluded from capital base, whereas contingency reserve and reserve for doubtful debts may be included if not created for a specific liability. Excess provisions for taxation, and the treatment of proposed dividend, dividend equalisation reserve and exchange difference reserve, depend on the controlling precedent applied to the item. Shares whose income is required to be excluded from chargeable profits are excluded from capital base even if no dividend was earned in the relevant year, and bonus share and reserve adjustments follow the governing capital computation precedent. Case-Laws Income Tax Thu, 12 Nov 1992 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=19696