It is as follows: – “The rate of dividend declared shall not exceed the average of the rates at which dividend was declared by it in the three years immediately preceding that year.” Q3) What is a call for unpaid capital?

A call for unpaid share capital is one in which the company’s directors inform the shareholders that they are obligated to pay the remaining share amount owed to the company. Q4) Is unpaid capital an asset? The unpaid share doesn’t provide the company any share capital and also the investors doesn’t get the voting rights therefore, it can be concluded that the unpaid capital is not an asset. Q5) What is the total aggregate amount unpaid shares? The total aggregate amount of unpaid share can be calculated by subtracting the initially paid value of share with the total value of the share. Q6) Can dividends be paid without profit? No, the dividends is the Part of the profit which becomes part of the shareholders. Therefore, it can’t be paid if there is no profit. Q7) How much dividend is tax free in India? The payment of dividends up to 2,50,000 rupees is tax free in India. Q8) What is unpaid and uncalled capital? The remaining amount of the subscribed share capital is known as the unpaid share capital whereas, when the remaining dues of the share capital has not been called upon by the company they are known as uncalled capital.