Dividends from this years profits

dividend can bepaid from current year profit, if it has been decided by board in thier meeting.

regards

vivek varshney

Hi,

1. Sec. 2(14A) Dividend includes interim dividend.

2. sec 205 Dividends to be paid only out of profits arrived at after providing for the depreciation for that year or from the profits of early years left after providing for the depreciation of those years or out of both or out of money provided by the Govt. (central or state) in pursuance of gurantee.

3. In your case your company can pay dividend once its is declared by the board and same is confirmed in the Annual General meeting by passing ordinary resolution.

Warm regards

Regulation 86 of Table-A provides that the Board may from time to time pay to the members such interim dividends as appear to it to be justified by the profits of the company.

Before declaring an interim dividend, the directors must satisfy themselves that there are profits available for distribution by way of dividends. The declaration of interim dividends depends much more upon estimates and opinions than the declaration of a final dividend, which is made upon the information contained in a formal balance sheet.

Warm regards

according to me dividents can be paid 4 current as wel as reseves & surplus (accumalated profit)

u can pay divident only to extent of  75 % of ur profits ... as per companies act,1956

ok i hope ur doubt is clear

Thanks for your responses. Your responses answered my question. I do have another question and I would appreciate any help in this regard. If dividends are paid to a share holder who happens to be a US Citizen, is the dividend amount received taxable for that person in US? I understand that the company has to pay dividend tax in India.