Dividend declaration locality rule requires companies to maintain share register, hold meetings and pay dividends within India. Rule 27 requires companies to (a) maintain the share register for all shareholders at their principal place of business in India from the first day of April of the assessment year, (b) hold the general meeting to pass accounts and declare dividends at a place within India, and (c) ensure declared dividends are payable only within India to all shareholders to effectuate withholding tax obligations.