Income Tax : The case explains how dividend income is taxed based on residential status and type of investment. It clarifies slab-based taxatio...
Income Tax : The analysis explains how buy-back taxation shifted from company-level tax to shareholder dividend tax and is proposed to return t...
Income Tax : Federal cooperatives receive a temporary deduction for dividends earned from company investments made before 31 January 2026. This...
Income Tax : The Finance Bill, 2026 proposes to disallow interest deductions against dividend and mutual fund income. From April 2026, such inc...
Company Law : Interim dividend can be declared solely by the Board of Directors under the Companies Act. Shareholder consent is not required if ...
Company Law : The Ministry of Corporate Affairs confirms the five-day time limit for depositing dividends under Section 123(4) of the Companies ...
Company Law : The Indian government has reduced reporting forms for companies on unclaimed dividends and integrated fund transfers with Bharatko...
Income Tax : The case examined whether disallowance under section 94(7) should be limited to exempt dividend. The Tribunal held that the provis...
Income Tax : The ITAT Delhi has set aside an order that levied an excessive 37% surcharge on the dividend income of Srijan Family Trust, confir...
Income Tax : Prasad Film Laboratories Pvt. Ltd. Vs ACIT (Telangana High Court) Payments in Normal Business Course Not Deemed Dividend under Sec...
Income Tax : ITAT Kolkata held that dividend distribution tax u/s 115-O of the Act and interest u/s 115P of the Income Tax Act is applicable on...
Income Tax : ITAT Bangalore sends Light Ray Advisors LLP's dividend exemption claim back to AO for re-examination, noting potential oversight o...
Company Law : The case deals with a 235-day delay in transferring unpaid dividend to the mandated account. The authority imposed penalties, emph...
Company Law : The ROC held that depositing interim dividend in a current account instead of a separate account violates section 123(4). Monetary...
Company Law : A company and its directors were penalized under Section 450 for distributing an excess interim dividend due to miscalculated tax ...
SEBI : As per the extant regulatory framework, the Trustees hold the property of the Mutual Fund in trust for the benefit of the unit hol...
Corporate Law : IRDAI permits Insurers to classify investments in Preference Shares and Equity Shares as part of Approved Investment of for at lea...
Understand the process for declaration of final dividend by private limited companies under Section 123 of Companies Act, 2013 with our informative article.
Understand the taxability of dividends and the quarter-wise breakup of dividend income. Stay informed about the recent changes in taxation laws.
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 (Company follows) Sum of money […]
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 […]
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.
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), […]
IRDAI permits Insurers to classify investments in Preference Shares and Equity Shares as part of Approved Investment of for at least 2 consecutive years immediately preceding (as required under Regulation 3(a)(4) and 3(a)(S) of IRDAI (Investment) Regulations, 2016) for the period from 1st October, 2021 to 31st March, 2022.
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. Also, a lot […]
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 […]
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. Consideration before […]
