Interim dividend

The answers of all your questions are YES and you need to pay dividend distribution tax on distributed profits.

Sir we are small company do we still need to transfer dividend in seperate bank account?

Yes. You may have a single separate dividend account and transfer dividend amount to that account every time dividend is declared and distribute the entire dividend amount from such account.

if any amount remained unclaimed and unpaid then such amount need to be transferred to separate Unpaid Dividend Account for that year for 7 years.

Thank yu sir for yur kind reply. God bless yu

Sir can yu also pls clear Point no 2 regarding Dividend distribution tax. How much and when to pay?

We are declaring dividend for September and its march now so how can we comply the same as tax has to be deposited within 14 days i guess?

Since you are planning to declare interim dividend only. Kindly note the following compliances

1. As per Sec 123(4) of the Companies Act, 2013 the amount of dividend, including interim dividend shall be deposited in a scheduled bank in a separate account within 5 days from the date of declaration of such dividend.

2. Time limit for payment of dividend distribution tax (DDT):-

   The amount of dividend tax shall be deposited within 14 days from the earliest of the following dates:

a) declaration of dividend., or

b) distribution of dividend., or

c) payment of dividend

Rate of Dividend Distribution Tax

As per the amendment made by Finance Act, 2015 DDT is to be paid at the rate of 20.358% (ie 17.647% basic rate +12% surcharge+3%Cess)

Suppose you have declared a  dividend total amount of 10,00,000

DDT is 10,00,000*20.358% - Rs. 2,03,580/-

Regards,

Arjun Rajagopal