Dividend declaration in case of loss
This query is : Resolved
23 August 2014
Dear Sir,
I want to know that as per section 205 of the companies act, 1956 there is requiremnt of transfer of certain amount in percentage to general reserve out of current profit before providing for dividend.
But what is the process if company has made loss in the current year and it does not have current profit, however company wishes to provide for dividend out of its accumulated profit.
Please reply !!
Its Urgent!!
With Regards
Dhiraj Kumar
I want to know that as per section 205 of the companies act, 1956 there is requiremnt of transfer of certain amount in percentage to general reserve out of current profit before providing for dividend.
But what is the process if company has made loss in the current year and it does not have current profit, however company wishes to provide for dividend out of its accumulated profit.
Please reply !!
Its Urgent!!
With Regards
Dhiraj Kumar
26 August 2014
See Rule 8.1 Companies Act 2013.
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
- CG Tax On residential property
- Applicable TDS for Purchase of Flat from NRI
- Claiming exemption of perquisite for employee-owned car under New Tax Regime in ITR-2
- Gift of mutual fund units to daughter
- Under construction property in ITR
- Reporting of STCG on Property in ITR
- NRI ITR2 account in 2025-26 ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,.
- Not able to file ITR
- Upload Level ValidationITR3Category of Defect B/D
- Building tax payment deduction in rental Income
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Delisted shares sold in off market/ Rebate u/s87A
- In Exports Sales HSN details where to fill
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Difference in tax comparison report
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
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
