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Tax Aspects

Tax Aspects With effect from financial year 2003-4, dividend income from domestic companies and mutual funds is exempt from tax in the hands of the shareholders investors unit holders. However, the domestic companies will be liable to pay dividend distribution tax at...

Procedural Aspects

Procedural Aspects The important events and dates in the dividend payment procedure are: 1. Board Resolution: The dividend decision is the prerogative of the board of directors. Hence, the board of directors should in a formal meeting resolve to pay the dividend. 2....

LEGAL PROCEDURAL AND TAX ASPECTS

LEGAL PROCEDURAL AND TAX ASPECTS Legal Aspects The amount of dividend that can be legally distributed is governed by company law pronouncements in leading cases, and contractual restrictions. The important provide company law pertaining to dividends are described...

Rationale

Rationale As pointed out earlier, no major economic benefit results from bonus shares and share splits. Yet certain advantages are associated with them. In the first place the issue of bonus shares, splits would have the effect of bringing the market price of shares...