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COMPANIES ACT, 2013DIVIDENDBACKGROUNDERDIVIDEND1. Meaning of Dividend term dividend has been defined under Section 2(35) of the Companies Act, 2013. The term Dividend includes any interim dividend.
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A dividend is a distribution of profits by a corporation to its shareholders.
Shareholders or individuals who receive dividends from a corporation are required to report this income on their tax returns.
To report a dividend, shareholders should include the amount of the dividend received on their tax return forms.
The purpose of reporting dividends is to ensure that individuals accurately report their income and pay the correct amount of taxes.
Shareholders must report the amount of dividends received, the name of the corporation paying the dividend, and any other relevant details.
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