Interim Dividend

Interim Dividend – An interim dividend is a dividend distributed by a company to its shareholders before the end of the financial year and prior to the declaration of the final dividend at the Annual General Meeting (AGM). It is typically declared when a company reports strong earnings or excess cash flow during the year. The board of directors decides the interim dividend based on the company’s financial performance and liquidity position. Unlike the final dividend, it does not require shareholder approval. Example: A company declares an interim dividend of ₹5 per share after reporting high quarterly profits, rewarding shareholders ahead of the year-end financial closing Example: ₹10,000 interim dividend received → fully taxable as income.