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Home > Income Tax > Help Center > Tax on Dividends Last Updated: Feb 21st 2024
Most people own stocks, thus dividends are popular. Company earnings are paid as dividends. Learn Indian dividend types, forms and their taxation.
This document covers
The differences between final dividend and interim dividend are as follows
S.No | Particulars | Final Dividend | Interim Dividend |
---|---|---|---|
1 | Definition | If the dividend is declared at Annual General Meeting of the company, it is known as final dividend | If the dividend is declared and paid during an accounting year i.e., before the finalization of accounts for the year, it is known as interim dividend. |
2 | Declaration | Recommended by Board of Directors and approved by shareholders at AGM | Announced by Board of Directors |
3 | Time of Declaration | After preparation of financial statements | Before preparation of financial statements |
4 | Revocation | It cannot be revoked | It can be revoked with the consent of all shareholders |
Section 2(22) (a) to e covers the definition of dividend. As per this, the following receipts are deemed to be dividend
Disclaimer: This article provides an overview and general guidance, not exhaustive for brevity. Please refer Income Tax Act, GST Act, Companies Act and other tax compliance acts, Rules, and Notifications for details.