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
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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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