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.
5 Replies
sabyasachi mukherjee
(27574 Points)
Replied 30 August 2023
Obviously out of accumulated profit
yes you need to pay tax on it.
yes you need to pay tax on it.
Eswar Reddy S
(CFO- at NHTF)
(58270 Points)
Replied 30 August 2023
1. Yes it is allowed to declare dividend from accumulated profits ( Reserves / P & L credit balance in balance sheet)
2. Tds provisions are applicable for dividend
2. Tds provisions are applicable for dividend
Lila
(Job)
(512 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)
(58270 Points)
Replied 06 September 2023
Now dividends are taxable in the hands of the investor
Recent Topics
- Iska djd djrbdsjebshe sir ur rei ejr reinr the jr
- GST registration for medical shop in Karnataka
- Hsshs me know if you are free number of the
- Chu Kang and the situation of the situation and I
- How to reverse wrong transaction payment in phonep
- Paytm wrong transaction
- How to reverse wrong transaction payment in phonep
- Issue with refund for person who has filed for rel
- How to take ITC for October 2024 GST Payment in PM
- How to refund a wrong transaction Phone Pe?
Related Threads
CAclubindia
