09 February 2009
If a Private Limited Co (Non Listed) wants to declare interim dividend, so what is the stipulated period to make dividend payment and suppose if the Company fails to make the Dividend payment within stipulated period what will be the penalty under Companies Act and Income Tax Act etc… Seek experts Advise/Opinion on the above.
09 February 2009
Under income tax act there is no penalty but if dividend tax is not paid in time then you have pay alongwith interest.
It is serious problem under companies act, the management are liable to pay fine and if there delay without assigning any reasons for the same the courts can give judgement for imprsionment of officials also.
If you want to declare interim dividend then conduct the board meeting and results to a particular date and based on the favourable results you can declare interim divivdend.
File form 23 of Companies act to the roc and pay dividend tax and distribute dividend within 21days of passing the resolution.
Section 205 to 207 of Companies Act very clearly says for Declaration of Dividend and Penalty clause. But one of my friend says dividend to be paid within 14 days from the date of declaration please advise what is the maximum period for distribution of dividend from the date of declaration, is it 14, 21 or 30 days.
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