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of <h1>Rule 27: Indian Companies Must Declare and Pay Dividends Locally, Maintain Share Register at Principal Business Location.</h1> Rule 27 of the Income Tax Rules, 1962, outlines the requirements for companies in India regarding the declaration and payment of dividends, including those on preference shares. Companies must maintain their share register at their principal place of business in India from April 1 of the relevant assessment year. General meetings for approving accounts and declaring dividends must occur within India. Additionally, any declared dividends must be payable only within India to all shareholders.
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