Board Resolution: Declaration of Interim Dividend
Declare an interim dividend during the year at a board meeting, out of profits of the current year or surplus in the profit and loss account.
What it is
Under Section 123(3) of the Companies Act, 2013, the board may declare an interim dividend during the financial year, or at any time before the AGM, out of the surplus in the profit and loss account or out of profits of the year in which it is declared. If the company has incurred a loss up to the end of the quarter before declaration, the rate cannot exceed the average rate of dividend declared in the three preceding years. The resolution records the rate, amount, record date and payment date.
When it is used
- Distributing profits during the year.
- Paying dividend before the year ends for planning reasons.
- Shareholders need distributions between AGMs.
What the template covers
- Company name, CIN and meeting details
- Rate, face value and dividend per share
- Total paid-up shares and total amount
- Record date and expected payment date
- TDS rate
- Source of dividend
Details you will need
The generator asks for the following. Fields marked with an asterisk in the form are required; the rest can be left blank and filled in later in Word.
Company
Company Name; CIN; Registered Office
Meeting
Board Meeting Date; Place
Dividend
Dividend Rate (% on face value); Face Value per Share (₹); Dividend per Share (₹); Total Paid-up Shares; Total Interim Dividend Amount (₹); Record Date / Book Closure Date; Expected Payment Date
TDS
TDS Rate
Source
Source of Dividend
Authentication
Chairman Name; Chairman DIN
Stamp duty, registration and filing
The amount is deposited in a separate bank account within five days and paid within 30 days of declaration (Section 127). Interim dividend is confirmed by members at the AGM. The company deducts TDS on dividend to resident shareholders above the threshold for the year; check the current rate and threshold.
Generate the BR — Declaration of Interim Dividend
Fill in the form and download the draft as a Word file. It is a general template, not legal or professional advice; have it reviewed for your facts before you sign or rely on it.
Need this checked against your facts, or the registration or filing that follows (e.g. the related MCA e-form)? Contact SKAG and Associates
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Frequently asked questions
Who declares an interim dividend?
The board of directors.
Can interim dividend be paid in a loss year?
Yes, out of surplus, but if there is a loss up to the preceding quarter, the rate is limited to the average of the three preceding years.
Does the AGM need to approve interim dividend?
Members confirm it at the AGM.
This page gives general information for reference only. Laws, stamp duty rates and filing requirements change and differ between States, so confirm the current position for your case. Related: all document templates · free tax calculators · compliance calendar and guides.