Sir The way you exolained the treatment of losses only current year out of reserves seems practical and reasonable. But sir if we follow that then Sec123wil be contravened which says before declaring any dividend set off all previouscyear losses. What is final conclusion that we have to follow for exams. Sir if you have any clarification or practical sum which shows how ICAI approaches the sum and please give the final conclusion

Questions › Category: CA-Final Dividend › Sir The way you exolained the treatment of losses only current year out of reserves seems practical and reasonable. But sir if we follow that then Sec123wil be contravened which says before declaring any dividend set off all previouscyear losses. What is final conclusion that we have to follow for exams. Sir if you have any clarification or practical sum which shows how ICAI approaches the sum and please give the final conclusion

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Himalaya asked 6 years ago

Question Tags: Sec 123 and rule 3

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Ravi Staff answered 6 years ago

See below link. All interpretations are as per Sec 123 and Rule 3. Practical problems are covered in our course, second link has problems which we solve in class.

Sir, what is the meaning of “carried over past losses and depreciation” which must be set off before declaring the dividend. Is it having the same meaning as given under the Income Tax Act?

https://drive.google.com/file/d/1H2OLmwofGgOoiwgIPQLCRQqe6sz-eCrz/view?usp=sharing