Dividend by a private company

Pvt ltd 564 views 2 replies

Can a private company distribute whole of its profit in the form of rent from a property to its shareholders as dividend?

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


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 19 March 2026
Article Assistant

Gupta Sachdeva & Co. Chartered Accountants

New Delhi

CA Final

View Details
Company
Featured 28 March 2026
CA Final

Ashok Amol & Associates

New Delhi

CA Final

View Details
Company
Featured 14 April 2026
GST CONSULTANT

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 28 March 2026
Accountant

Ashok Amol & Associates

New Delhi

B.Com

View Details
Company
Featured 13 April 2026
GST CONSULTANCY

Abhishek G Agrawal & Co.

Korba

CA Final

View Details