From board resolution to shareholder payout — and every compliance step between.
Declaring a dividend is the easy part. What follows — TDS deduction at the correct rate, coordinating with your RTA and depositories, meeting the 30-day payment deadline, filing the right returns, and tracking unclaimed amounts for years afterward — is where most of the actual compliance risk sits.
We manage the full cycle end-to-end, so a dividend declaration doesn't turn into a compliance loose end six months later.
Plan Your Dividend DistributionHandled as one continuous process, from declaration to IEPF tracking.
Each has its own approval process and timeline.
| Interim DividendBoard-approved | Final DividendMost common | Special DividendOne-time | |
|---|---|---|---|
| Approval Required | Board of Directors only | Shareholders at the AGM, on the Board's recommendation | Board and/or shareholders, per the specific resolution |
| Typical Trigger | Mid-year profits or cash surplus | Year-end profit, after audited financials | One-off events — an asset sale, exceptional profit |
| Payment Timeline | Within 30 days of declaration | Within 30 days of declaration | Within 30 days of declaration |
| Can Be Revoked? | No, once declared | No, once declared | No, once declared |
The same disciplined cycle, whatever type of dividend you're declaring.
Dividend amount computed and placed before the Board or AGM for approval.
Record date fixed and the eligible shareholder list finalised with your RTA.
Tax deducted at source calculated per shareholder category and applicable rate.
Payment processed through your RTA, bank and depositories, within the 30-day window.
TDS returns filed, and unclaimed or unpaid dividends tracked toward eventual IEPF transfer.
Dividend payouts to non-resident shareholders carry extra steps most in-house teams don't run often enough to have smooth — declarations to verify, treaty rates to apply correctly, and certification to file before a single rupee can be remitted. We run this as its own workstream, in bulk across your full NRI shareholder base, rather than case by case.
Review tax residency declarations, DTAA forms and lower/nil TDS certificates submitted by each NRI shareholder.
Apply each verified declaration to that shareholder's TDS calculation, at the correct treaty rate.
Prepare and file Form 145 / Form 146 certification in bulk for all NRI shareholders ahead of remittance.
Cross-check deducted TDS against declarations for every shareholder, and correct any mismatch before payout.
Get final go-ahead from the company before funds are released to NRI shareholders.
Prepare and file the TDS return (Form 144) covering all non-resident shareholder payments for the period.
Grouped by what they're for, so it's easy to see what to collect.
Within 30 days of declaration under the Companies Act — missing this triggers penal interest and potential prosecution for the company and its officers.
It depends on the shareholder's category, residential status, and the applicable threshold and rate under the Income Tax Act — we compute this per shareholder before payout, not as a flat blanket rate.
They're transferred to a designated Unpaid Dividend Account, and after seven years, to the Investor Education and Protection Fund (IEPF) — we track this timeline and manage the transition when it comes due.
Yes — we work directly with your Registrar and Transfer Agent and depositories to make sure the payout reaches shareholders correctly and within the statutory window.
Yes — the core compliance applies to both, though listed companies carry some additional SEBI-driven timelines and disclosures, which we factor into the process.
Tell us your distributable profit and shareholder base, and we'll scope the process.
