Dividend

4028 views 3 replies

Rajesh Kumar

Student

211 Points Posted on 05 December 2008

Hi Sir

After AGM

Within How many days company should deposit the money into bank account?

Within How many days it should issue dividend warrent to the shareholder?

Within How many days company should pay dividend tax?

Within how many days Company should transfer the money to Unclamed dividend account?

When It should be transfered to Invester Education and protection fund?

thanks in advance

Rajesh

Replies (3)

Sujith

Chartered Accountant

83 Points Posted on 09 December 2008

As far as my knowledge goes,

Dividend Amount has to be deposited within 5 days from the date of the declaration into a separate bank account in a scheduled bank.

Dividend Warrants and payment of the dividend has to be made within 30 days from the date of the declaration and approval at the AGM.

Dividend unclaimed lying in the Dividend Account even after expiry of 30 days has to transferred to Unclaimed Dividend Account within 7 days from the expiry of aforesaid 30 days

And lastly Dividend unclaimed lying in the unclaimed Dividend Account for period of 7 years has to be transfered to IEPF

Note.: As the new Company Law Bill 2008 which is in the conduit of being passed as an enactment does not provide for transfer of the Dividend Unclaimed to IEPF even if it is lying in the Unclaimed Dividend Account from many years.

Good Luck ......

Pavan Jain S

Chartered Accountant

1575 Points Posted on 09 December 2008

Originally posted by :Rajesh Kumar
"	Hi Sir After AGM Within How many days company should deposit the money into bank account? Within How many days it should issue dividend warrent to the shareholder? Within How many days company should pay dividend tax? Within how many days Company should transfer the money to Unclamed dividend account? When It should be transfered to Invester Education and protection fund? thanks in advance Rajesh	"

Corporate Distribution tax has to be paid within 14 days from the date of declaration or payment, whichever is earlier

Rajesh Kumar

Student

211 Points Posted on 10 December 2008

Originally posted by :Sujith
"	As far as my knowledge goes, Dividend Amount has to be deposited within 5 days from the date of the declaration into a separate bank account in a scheduled bank. Dividend Warrants and payment of the dividend has to be made within 30 days from the date of the declaration and approval at the AGM. Dividend unclaimed lying in the Dividend Account even after expiry of 30 days has to transferred to Unclaimed Dividend Account within 7 days from the expiry of aforesaid 30 days And lastly Dividend unclaimed lying in the unclaimed Dividend Account for period of 7 years has to be transfered to IEPF Note.: As the new Company Law Bill 2008 which is in the conduit of being passed as an enactment does not provide for transfer of the Dividend Unclaimed to IEPF even if it is lying in the Unclaimed Dividend Account from many years. Good Luck ......	"

Hi Sujit

Thanks a tonn. your reply is qutie helpful to me. I have one more doubt if you could clear it. if dividend amount is lying in the unclaimed dividend account , bank will credit some interest on that right? what will happen to that interest amount.

regards

Rajesh