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Yes, separate Bank Account is required to be opened and amount of dividend payable shall be credited to the said account within 5 days of declaration.
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Requirement of seperate dividend account for small pvt ltd company
I wish to understand If it is a must to open a separate dividend payment account in the bank for payment of dividend in a Closely held Private limited company with ONLY TWO DIRECTORS? I wish to get a clear picture on this subject
Asked 2 years ago in Corporate Tax
IS THIS A SPECIAL DIVIDEND ACCOUNT OR CAN IT BE A SEPERATE CURRENT ACCOUNT IN THE SAME BANK WHERE WE HAVE OUR REGULAR CURRENT ACCOUNT OR IN ANOTHER BANK?
Asked 2 years ago
-As per section 123(4) of the Companies Act, 2013, the amount of dividend including interim dividend shall be deposited in a scheduled bank in a separate account within five days from the date of declaration of such dividend.
- It can be another regular current account in same bank.
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