Section 29C
Reserve fund . — (1) Every housing finance institution which is a company shall create a reserve fund and transfer therein a sum not less than twenty per cent . of its net profit every year as disclosed in the profit and loss account and before any dividend is declared.
29C. Reserve fund . — (1) Every housing finance institution which is a company shall create a reserve fund and transfer therein a sum not less than twenty per cent . of its net profit every year as disclosed in the profit and loss account and before any dividend is declared.
Explanation . —A —A housing finance institution creating and maintaining any special reserve in terms of clause (viii) of sub-section (1) of section 36 of the Income-tax Act, 1961 (43 of 1961), may take into account any sum transferred by it for the year to such special reserve for the purposes of this sub-section.
(2) No appropriation of any sum from the reserve fund including any sum in the special reserve which has been taken into account for the purposes of reserve fund in terms of sub-section (1), shall be made by such housing finance institution except for the purpose as may be 1 [specified by the Reserve Bank] from time to time and every such appropriation shall be 2 [reported to the National Housing Bank and the Reserve Bank] within twenty-one days from the date of such withdrawal: