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Within how many days of declaration must the unpaid/unclaimed dividend be transferred to a separate 'Unpaid Dividend Account'?
A7 days from due date
B15 days from due date
C30 days from due date
D37 days from due date (30+7)
Answer & Solution
Correct answer: D. 37 days from due date (30+7)
1. Section 124 — payable within 30 days of declaration; any amount unpaid or unclaimed must be transferred to the Unpaid Dividend Account within 7 days of expiry of the 30-day window.
2. Therefore 37 days from declaration in aggregate.
3. Hence (D).
_Source: ICAI BoS CA Inter Paper 2 — Declaration and Payment of Dividend_