Question ID : 31712

DECLARATION OF DIVIDEND AND DEPOSIT OF SUM IN DIVIDEND ACCOUNT

Please clarify as to whether date of of declaration of dividend is taken for the purpose of 5 days prescribed for placing the money in to Dividend Account or it is excluded therefrom. Any specific Rule or Case Law may please be shared if possible.

Answer ID : 69802

Since there is no specific direction for inclusion of the declaration date for counting purpose in that section, date of declaration of dividend need not be counted for the purpose of 5 days. Normally, it will be deposited WITHIN 5 days. It will be counted from the very next day. No case laws were found. You can use any other supporting case laws, where the principle of counting of days are clearly mentioned.

Answer ID : 69811

Attention is invited to the provisions of section 9 of the General clauses Act 1897 which provides that when a central law uses the word "FROM" in a series of days or period of time then the first day is excluded from the series. Therefore the day of declaration shall be excluded for the purposes of interpreting section 123 of the CA 2013.

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