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DIVIDEND BY COS

Co Act 2013 141 views 2 replies

neha

293 Points Joined May 2011

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)

sabyasachi mukherjee

27955 Points Joined May 2017

Dividends can only be distributed out of undistributed profits.

Chirag

Professional

1979 Points Joined December 2017

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..