A private limited company is declaring dividend out of profit of last 2 years. My query is:
1. Is it allowed to declare dividend from accumulated profit.
2. Does the company need to pay any tax on it.
Lila (Job) (491 Points)
30 August 2023A private limited company is declaring dividend out of profit of last 2 years. My query is:
1. Is it allowed to declare dividend from accumulated profit.
2. Does the company need to pay any tax on it.
sabyasachi mukherjee
(27113 Points)
Replied 30 August 2023
Eswar Reddy S
(CFO- at NHTF)
(58263 Points)
Replied 30 August 2023
Lila
(Job)
(491 Points)
Replied 31 August 2023
Does the company have to pay any taxes (DDT has been abolished)...Or just need to deduct TDS..
mjami wisdo
(2 Points)
Replied 31 August 2023
@ just fall
Dividends tax is withheld by the company declaring the dividend on behalf of the shareholder receiving it. In specie dividends are subject to tax in the hands of the company and not the beneficial owner.
Eswar Reddy S
(CFO- at NHTF)
(58263 Points)
Replied 06 September 2023
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