https://www.taxtmi.com/caselaws?id=98103 Interim dividend income under section 16(2) of the Indian Income-tax Act becomes taxable only when paid, credited, distributed, or deemed so dealt with. Unlike a dividend declared in general meeting, which creates an enforceable debt, an interim dividend declared by directors remains revocable before payment and does not create an enforceable obligation. Company articles authorising directors to declare interim dividends do not change that character. Accordingly, mere declaration does not trigger taxability; the interim dividend is taxable in the year of actual payment, credit or distribution. en-us Wed, 01 Apr 1964 00:00:00 +0530 Mon, 12 Feb 2018 14:46:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=98103 Interim dividend income under section 16(2) of the Indian Income-tax Act becomes taxable only when paid, credited, distributed, or deemed so dealt with. Unlike a dividend declared in general meeting, which creates an enforceable debt, an interim dividend declared by directors remains revocable before payment and does not create an enforceable obligation. Company articles authorising directors to declare interim dividends do not change that character. Accordingly, mere declaration does not trigger taxability; the interim dividend is taxable in the year of actual payment, credit or distribution. Case-Laws Income Tax Wed, 01 Apr 1964 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=98103