Dividend payment out of capital reserve

dividend can be paid only from the following sources

Source for payment of Dividend:

Dividend can be paid out of Followings: Section- 123 (1)(a)

• Profit of the current year after providing of the depreciation; or
• Profit of the previous financial year or years after providing for depreciation for previous years; or
• Out of the money provided by Central or State Government for payment of dividend in pursuance of guarantee given by that, if any.