banner_ad

Dividend distribution ( Bank Account Dillemma)

This query is : Resolved 
Profile Image

Guest

Profile Image

Guest (Querist)
28 September 2008 This is with regard to 205 1A of Dividend distribution.

The language of the provision is very plain, as it does not throw more light on the matter.

Here is a practical case in which a public but non-listed company (i.e.closely held company)wants to distribute dividend to its 6 shareholders.

It is very clear that, the public at large is not interested in the company.

The problem I encountered is regarding a seperate dedicated dividend account.

Is is essential for company to route the payment through this account?

please help!!!!!!!!!!!!!!!!!!
Profile Image

CMA Jitendra Singh

Profile Image

CMA Jitendra Singh (Expert)
28 September 2008 Yes ,otherwise interest will be calculated as per provisions .Simply ,open an account with scheduled bank and credit amount there
Profile Image

Guest

Profile Image

Guest (Querist)
28 September 2008 Thank you for response, but that is still not clear to me.

I want to know, whether it is mandatory in the practical case?
Profile Image

S.Srinivasaraghavan

Profile Image

S.Srinivasaraghavan (Expert)
29 September 2008 It is mandatory, as no exemption has been given for closely held companies.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now


CCI Pro
Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!


Similar Resolved Queries


loading


Unanswered Queries


banner

Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Subscribe Now

Follow us
add to google news


Answer Query



Quick Links



Browse by Category




Latest Job Openings

View all
Company
19 May 2026
Fundraising Expert

MentorsWorld Ventures Private Limited

Ahmedabad

Others

View Details
Company
ARTICLESHIP 31 May 2026
Article Assistant

KPRS And Associates

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 08 June 2026
Internal & Taxation Article

O P Bagla & Co LLP

New Delhi

CA Inter

View Details
Company
23 May 2026
Article Assistant

Geeta Manchanda & CO.

New Delhi

CA Inter

View Details
Company
22 May 2026
U.S. Financial Reporting & Consolidation Manager

Karia Overseas

Ahmedabad

CA

View Details
Company
ARTICLESHIP 27 May 2026
CA Article Trainee

Rahul Dang & Associates-Chartered Accountants

Pune

CA Inter

View Details
Company
26 May 2026
Education Content Creator

Adyayam Education LLP

Bengaluru

CA Foundation

View Details
Company
22 May 2026
Audit assistant

Displayandbeyond

Mumbai

CA

View Details