Dividend

1. Can a Pvt Ltd company declare Dividend to its share holder? - Yes

2. Will dividend shall be counted as profit of company for Income tax purpose? - The question is not clear. Dividend paid by the Company has no impact in IT

3. Dividend can be paid from Profit before tax or Profit after Tax? - PAT

4. What are the taxes applicable & there rate (Dividend Distribution Tax etc.)? - DDT - basic 15% + surchage + ed cess + hr ed cess

5. Is there any limit / % of profit can be distributed as dividend? - Refer to your Articles. In the Act, there is no limit. don't forget to transfer to GR in case dividend rate exceeds 10%, as per the Companies (Transfer of Profits to GR) Rules.

1. Can a Pvt Ltd company declare Dividend to its share holder? - Yes

2. Will dividend shall be counted as profit of company for Income tax purpose? - The question is not clear. Dividend paid by the Company has no impact in IT

3. Dividend can be paid from Profit before tax or Profit after Tax? - PAT

4. What are the taxes applicable & there rate (Dividend Distribution Tax etc.)? - DDT - basic 15% + surchage + ed cess + hr ed cess

5. Is there any limit / % of profit can be distributed as dividend? - Refer to your Articles. In the Act, there is no limit. don't forget to transfer to GR in case dividend rate exceeds 10%, as per the Companies (Transfer of Profits to GR) Rules.

Thanks very much for your help. I understand from your reply, aAs dividend is being paid from PAT, it does not make sense to pay dividend if all company share holders are family members. As it is attracting dual taxation.

thank you again for sparing time for my query.

best regards,