Dividend payment

1. Rate of dividend is proposed by directors and approved by shareholders. As I understand, there is no max limit for the rate of dividend. Entire profit may be distributed but corporates don't do this from the perspective of expansion, sustainability etc
2. You may declare interim dividend during the FY or declare final dividend during the AGM
3. Dividend to be paid within 30 days from date of declaration
4. Dividend tax to be paid within 14 days from date of declaration/distribution/payment, whichever earlier
5. Rate of DDT is 17.64706% (15/85)
6. DDT cannot be adjusted any loss
7. If there is any loss during the year pertaining to which dividend is declared, you need to satisfy certain other conditions.

thanks for the speedy response. but i read in ca club and other forums that 

the dividend payable out of reserves shall not exceed 1/10 of the paid up capital and reserves.Rule 8.1

That's what I meant in the last point. Do you have loss during the year pertaining to which dividend is proposed to be declared?

no actually for the financial year 2015-26 , the profit would be around 10,00,000/-

the reserves on 2015-2016 is around 62,00,000/-

what is the maximum amount of dividend which can be declared ,ie taking into consideration this years profit and the reserves also.

we have not so far declared any dividend.

is it that, if there is no loss , the 1/10 th rule will not apply?

we would like to declare dividend more than the years profit , i.e out of the reserves also

You may declare dividend to the extent of current year profits (FY16) and surplus in P&L account (if any). With respect of declaration of dividend out of reserves, as I understand, it is applicable in case of inadequacy/absence of profits. Since, you don't fall under this catetory (ie you have profits), this rule may not be applicable. However, views of others are welcome.