Dividend articles

Declaration of Dividend – Section 123 to 127 of Companies Act 2013

DECLARATION OF DIVIDEND SECTION 123 TO SECTION 127 OF THE COMPANIES ACT 2013 READ WITH COMPANIES (DECLARATION AND PAYMENT OF DIVIDEND) RULE 2014  Definition of Dividend  Section 2(35) of Companies Act 2013 dividend includes interim dividend. Interim Dividend Means – The Dividend which is declared between financial year/ Calendar year ...

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Posted Under: Company Law |

Section 115BBD- Withdrawal of concessional Tax rate on dividend income

Withdrawal of concessional rate of taxation on dividend income under section 115BBD Section 115BBD of the Act provides for a concessional rate of tax of 15 % on the dividend income received by an Indian company from a foreign company in which the said Indian company holds 26 % or more in nominal value of […]...

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Posted Under: Company Law |

Declaration of Interim Dividend

Interim Dividend can be declared out of profits from start of current year till end of quarter preceding the date of declaration and accumulated profits of previous financial year, which are not yet transferred to the free reserves. Thus, the period can be more than 12 months in such cases....

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Posted Under: Company Law |

Analysis on Dividend Chapter of Companies Act, 2013

When company earns a profit or surplus, it is able to pay a proportion of the profit as a dividend to shareholders. Any amount not distributed is taken to be re-invested in the business. Applicable provisions: Chapter VIII- Declaration and Payment of Dividend (Section 123 to 127) read with Companies, (Declaration and Payment of Dividend),...

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Posted Under: Company Law |

All about dividend income, payment and compliances

Dividend income, payment and reporting has undergone major changes during the last and current financial year with increased taxation in the hands of the recipients and increased reporting requirements. These days investment in shares and securities has become a favourite of most people and as a result many people have dividend income. Al...

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Posted Under: Company Law |

Summary on Taxation of Dividends (Part – I)

BEFORE AY 2021-22 ♦ Dividend is taxable in the hands of distributor (i.e. Assessee distributing dividend) @ 15% + Surcharge applicable + Education Cess @ 4% in form of CDT/DDT ♦ Assessee receiving dividend gets Exemption up to Rs. 10 Lakhs of dividend income, above Rs.10 lakhs, taxable @ 10% on excess amount FROM AY […]...

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Posted Under: Company Law |

Declaration of Divided by NBFCs

Declaration of dividends by NBFCs In order to infuse greater transparency and uniformity in practice, it has been decided to prescribe guidelines on distribution of dividend by NBFCs. Applicability – All NBFC’s regulated by RBI Effective Date – Effective for declaration of dividend from the profit of F.Y. 2021 – 22 and onwards. Co...

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Posted Under: Company Law |

Taxation of Dividends -In The Hands of Shareholders

We know that before Finance Act, 2020 a dividend received from a domestic company is exempt in the hands of shareholders. Because company declaring dividend is required to pay Dividend Distribution Tax (DDT) under provisions of Section 115O of the Income Tax Act,1961 before crediting amount of dividend into account of shareholders. Many b...

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Posted Under: Company Law |

Taxation of Dividend Income – Complete Guide

Finance Act 2020 has made major amendments to the taxation of dividends. With these amendments the general notion that dividends are exempt is no longer the same. This Guide will help our fellow member CA’s, Students, and shareholders to understand the taxability of dividends. First lets understand the two types of dividend: 1. Inte...

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Posted Under: Company Law |

Paid or distributed Dividend? File Statement of financial transactions by 30th June

Are you a company which has paid or declared dividend? If you are, then you need to file Statement Of Financial Transactions (SFT) for reporting such payment/distribution of dividend for the first time. CBDT has expanded the scope of Statement of financial transactions (SFT) vide Notification No. 16/2021, dated 12-03-2021. By virtue of su...

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Posted Under: Company Law |

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