Can a private company distribute whole of its profit in the form of rent from a property to its shareholders as dividend?
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Dividend by a private company
Replies (2)
Yes, provided you have fulfilled all the conditions of sec. 205. i.e the depreciation should have been provided for and the loss if any in any previous year/s or the depreciation in that year (greater of it) should be deducted from the current years profit.
you also have to follow the rules of setting aside prescribed % of the profit under reserves. ( not applicable under the new act.)
Thank u.. I also had only these provisions in my mind
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