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.
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