Dividend on Shares

This query is : Resolved

Nitin Jain (Querist)
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26 February 2009 Dear Sir,

I have query on dividend on shares. I am holding some shares of a Pvt. Ltd. company for more than 5 years. The company is showing good profit every year, but they are not giving any dividend. There are only 2 share holders in the company.

Please advise, in this case, the dividend which was payable to me every year will be given to me when I will sell the shares.

With best regards,

NJ

CA.MANOJ LAMBA

CA.MANOJ LAMBA (Expert)
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27 February 2009 declartion of dividend by a company is not necessrary.it is on the discreation of comapny whether to declare dividend or not.
when you sell shares it will give rise to capital gain not to dividend