Time computation for transferring unclaimed dividend to IEPF
This query is : Resolved
25 October 2016
pls advise time computation from date of declation of Divident to max time allowed to tfr unclaimed dividend to IEPF after 7 Yrs.
26 October 2016
ACCORDING TO SECTION 124 OF THE COMPANIES ACT 2013, WHERE THE DIVIDEND IS NOT PAID WITHIN 30 DAYS, THE COMPANY WITHIN 7 DAYS ON EXPIRY OF 30 DAYS, I.E (30+7)= 37 DAYS TRANSFER THE UNPAID OR UNCLAIMED DIVIDEND TO UNPAID OR UNCLAIMED DIVIDEND ACCOUNT. IF THE COMPANY FAILS TO TRANSFER THE TOTAL AMOUNT WITHIN 7 DAYS ON EXPIRY OF 30 DAYS, COMPANY SHALL PAY THE INTREST @ 12% PA FOR PERIOD OF DELAY.
ANY MONEY TRANSFERED TO UNCLAIMED OR UNPAID DIVIDEND ACCOUNT REMAIN UNPAID FOR 7 YEAR, THEN SUCH A AMOUNT SHALL BE TRANSFERED TO IEPF. COMPANY SHALL SEND THE STATEMENT IN FORM DIV 5
ANY MONEY TRANSFERED TO UNCLAIMED OR UNPAID DIVIDEND ACCOUNT REMAIN UNPAID FOR 7 YEAR, THEN SUCH A AMOUNT SHALL BE TRANSFERED TO IEPF. COMPANY SHALL SEND THE STATEMENT IN FORM DIV 5
27 October 2016
Time limit after 7 yrs and
27 October 2016
Time limit after 7 yrs ? pls advise penalty, if any for delay.
02 August 2025
Sure! Here's a clear breakdown regarding the **time computation for transferring unclaimed dividend to IEPF (Investor Education and Protection Fund)** under the Companies Act, 2013, along with penalties for delay:
---
### 1. **Timeline for Dividend Transfer to Unpaid Dividend Account:**
* **Dividend declared on Date D.**
* Company must **pay dividend within 30 days** of declaration.
* If dividend is **not paid within 30 days**, the company must transfer the unpaid/unclaimed dividend amount to the **Unpaid Dividend Account** within the **next 7 days** (i.e., by Day 37).
* If the company **fails to transfer within 7 days after 30 days** (i.e., after Day 37), it is liable to pay **interest @12% p.a.** for the period of delay.
---
### 2. **Transfer of Unclaimed Dividend to IEPF:**
* The amount remaining **unpaid/unclaimed in the Unpaid Dividend Account for 7 consecutive years** from the due date of transfer to that account, must be transferred by the company to the **Investor Education and Protection Fund (IEPF)**.
* So, the company has to transfer the amount to IEPF **within 30 days after expiry of 7 years from the date it became due in the Unpaid Dividend Account.**
---
### 3. **Summary of Time Computation:**
| Event | Time Limit |
| ---------------------------------------------------------------------- | -------------------------------------------------------- |
| Dividend payment due to shareholders | Within 30 days from declaration |
| Transfer of unpaid dividend to Unpaid Dividend Account | Within 7 days after expiry of 30 days (i.e., by Day 37) |
| Period for which dividend remains unclaimed in Unpaid Dividend Account | 7 years from date of transfer to Unpaid Dividend Account |
| Transfer of unclaimed dividend to IEPF | Within 30 days after completion of 7 years |
---
### 4. **Penalty for Delay:**
* **Delay in transfer to Unpaid Dividend Account (beyond Day 37):** Interest @12% p.a. till the date of actual transfer.
* **Delay in transfer to IEPF after 7 years:**
* Company and every officer in default can be **fined up to ₹1,00,000** and **further fine up to ₹5,000 per day** of continued default.
* There may also be **additional legal consequences** under the Companies Act.
---
### 5. **Additional Notes:**
* The company must file **Form IEPF-5** (statement of unclaimed dividend and shares transferred to IEPF) within 90 days of transfer.
* Shareholders can claim their dividend or shares from the IEPF authority by applying through prescribed procedures.
---
---
### 1. **Timeline for Dividend Transfer to Unpaid Dividend Account:**
* **Dividend declared on Date D.**
* Company must **pay dividend within 30 days** of declaration.
* If dividend is **not paid within 30 days**, the company must transfer the unpaid/unclaimed dividend amount to the **Unpaid Dividend Account** within the **next 7 days** (i.e., by Day 37).
* If the company **fails to transfer within 7 days after 30 days** (i.e., after Day 37), it is liable to pay **interest @12% p.a.** for the period of delay.
---
### 2. **Transfer of Unclaimed Dividend to IEPF:**
* The amount remaining **unpaid/unclaimed in the Unpaid Dividend Account for 7 consecutive years** from the due date of transfer to that account, must be transferred by the company to the **Investor Education and Protection Fund (IEPF)**.
* So, the company has to transfer the amount to IEPF **within 30 days after expiry of 7 years from the date it became due in the Unpaid Dividend Account.**
---
### 3. **Summary of Time Computation:**
| Event | Time Limit |
| ---------------------------------------------------------------------- | -------------------------------------------------------- |
| Dividend payment due to shareholders | Within 30 days from declaration |
| Transfer of unpaid dividend to Unpaid Dividend Account | Within 7 days after expiry of 30 days (i.e., by Day 37) |
| Period for which dividend remains unclaimed in Unpaid Dividend Account | 7 years from date of transfer to Unpaid Dividend Account |
| Transfer of unclaimed dividend to IEPF | Within 30 days after completion of 7 years |
---
### 4. **Penalty for Delay:**
* **Delay in transfer to Unpaid Dividend Account (beyond Day 37):** Interest @12% p.a. till the date of actual transfer.
* **Delay in transfer to IEPF after 7 years:**
* Company and every officer in default can be **fined up to ₹1,00,000** and **further fine up to ₹5,000 per day** of continued default.
* There may also be **additional legal consequences** under the Companies Act.
---
### 5. **Additional Notes:**
* The company must file **Form IEPF-5** (statement of unclaimed dividend and shares transferred to IEPF) within 90 days of transfer.
* Shareholders can claim their dividend or shares from the IEPF authority by applying through prescribed procedures.
---
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