Declaration of dividend
This query is : Resolved
16 December 2014
hi, if a pvt ltd company wanted to declare interim divided of the company for the first time, from the accumulated Profit of the Previous Year and it does not transferred the profit to the Reserve of the company?
Then what are the conditions and amount to which a company may declare Dividend?
--
Then what are the conditions and amount to which a company may declare Dividend?
--
16 December 2014
Mandatory transfer to reserve is not required under Companies Act 2013. Companies are free to transfer such percentage of its profits for that financial year as it may consider appropriate to the reserves.
Interim dividend can be declared during any financial year out of the surplus in the profit and loss account and out of profits of the financial year in which the same is sought to be declared. Provided that in case the company incurs loss during the current financial year, upto the end of the quarter immediately preceding the date of declaration of interim dividend, then the interim dividend cannot be declared by the company at a rate higher than the average dividends declared during the immediately preceding three financial years
Interim dividend can be declared during any financial year out of the surplus in the profit and loss account and out of profits of the financial year in which the same is sought to be declared. Provided that in case the company incurs loss during the current financial year, upto the end of the quarter immediately preceding the date of declaration of interim dividend, then the interim dividend cannot be declared by the company at a rate higher than the average dividends declared during the immediately preceding three financial years
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- TDS on Consultancy- Non DTAA
- Reopen of assessment proceeding
- Depreciation of fixed assets- coop housing society in mumbai
- Management System (IMS)
- DIN reactivation
- COMMERCIAL INVOICE FOR MATERIAL AND FREIGHT
- GST rate and HSN code for sale of racing horses
- Query – TDS on purchase of land from NRI under Income-tax Act, 2025
- Eway bill generation from place other than registeted
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
