Dividend

Accountancy

Can bonus shares be issued in lieu of dividend ?? I I am.asking coz in IT , it says like it can't be issued

Reetikaa R

CA Final

★ 7K+

17-Feb-23 18:59

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Answers (6)

Bonus shares are free of cost but dividend is our own money which is the return on our investment of that company

Kamal Kumar

CA Inter

★ 7K+

17-Feb-23 19:01

No, bonus shares cannot be issued in lieu of dividend.

Varshaa M

CA Final

★ 35K+

18-Feb-23 01:20

But in accounts, it says it can be issued in lieu of dividend

Thread Starter

Reetikaa R

CA Final

★ 7K+

20-Feb-23 00:32

It can be issued but is generally not practiced. Can you share IT rules which you are referring to which prohibits issue of bonus in lieu of dividend.

CA Suraj Lakhotia

Admin

20-Feb-23 18:30

Sir

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Thread Starter

Reetikaa R

CA Final

★ 7K+

02-Mar-23 19:21

Thread Starter

Reetikaa R

Sir

Its not a prohibition. What it says is if a company pays bonus instead of paying dividend, deduction will not be allowed. Because dividends payments are not deductible.

CA Suraj Lakhotia

Admin

04-Mar-23 04:30

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