DIVIDEND BY COS

361 views 2 replies

A Pvt. Ltd. Company wants to declare dividend presently.

Following queries:-

1. Can the co, declare dividend from the profits of CY-21-22 only.

2. Can the co, declare dividend from the profits of PY-20-21 only. 

Also what compliances to be taken care of by the company for taxation.

TIA.

Replies (2)
Dividends can only be distributed out of undistributed profits.
Now No Dividend Distribution Tax ,So it's in hand of shareholder but co has to deduct TDS @ 10% if dividend payable is more than Rs 5,000...

Yes ,It's recommend to declare from current year undistributed profits after setting off past losses ,but can also be distributed from py surplus and any surplus transferred to Free reserves ,subject to conditions on withdrawal...and setting off cy loss or unabsorbed depreciation..

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