Dividend from free reserves
This query is : Resolved
10 August 2019
What will be the consequences
As per income tax and as per company act
if Dividend is paid in private company.. more than 1/10 of p.y paid up cap and free reserves and Even dividend tax is been paid on that...
As per income tax and as per company act
if Dividend is paid in private company.. more than 1/10 of p.y paid up cap and free reserves and Even dividend tax is been paid on that...
11 August 2019
No consequences it's allowed.
11 August 2019
Isn't it's a limit that u can't declare and pay dividend out of free reserves more than 1/10 of it...
11 August 2019
Agree with you, the total amount to be drawn from such accumulated profit shall not exceed 1/10th of the sum of its paid-up share capital and free reserves as appearing in the latest audite financial statement.
11 August 2019
Declaration of Dividend out of profits for previous years which are disclosed
under the head ‘Surplus’ in the financial statements will not tantamount to
declaration of Dividend out of reserves and accordingly will not attract the
requirements prescribed.
under the head ‘Surplus’ in the financial statements will not tantamount to
declaration of Dividend out of reserves and accordingly will not attract the
requirements prescribed.
12 August 2019
But sir company will have to disclose in annual filling and directors report . And what will be penalty under same
13 August 2019
Transfer back the reserves to surplus no penalty leviable being private company.
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
- TDS CREDIT MISMATCHING
- Buy back of shares u/s69
- Tax Audit Applicability – Newly Formed Partnership Firm with Profit Below 6%/8%
- RATE AND HSN CODE
- Need Professional Opinion - AY 2012-13 Old Demand & AY 2026-27 Refund Adjustment
- Carriage Road Act, 2007 read with Carriage by Road Rules, 2011
- EMI ISSUE IN HOUSING LOAN OLD REGIME
- TDS AND ITR ISSUE
- ADDITION OF CHALLAN IN TDS RETURN FORM 140
- TODAY INCOME TAX SITE IS NOT WORKING ANY OFFICIAL EXTENSION
- Bank details not Visible on Traces Portal
- Difference between Date of Payment and Date of Deduction?
- Journal entry of busniess expenses
- Cash balance limit and property purchases limit
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
- LLP audit under companies act
- Experienced CA recommendation from Kolkata for FNO return filing
- Interest Reporting in Form 168
- Sales of goods of amount Rs77 lakhs to a party
- Tax Demand of ₹4,650 for AY 2026-27
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
