Until recently, companies forwarded copies of their instructions to the concerned bank in relation to credit of dividends to the respective shareholders. The practice appears to have been done away with, causing inconvenience to the shareholders entitled to the relevant dividends and also for filing tax returns.
Frustrated by their customers constant queries in relation to credit of their dividend entitlements, the Banks feel jittery – culminating into uncalled for bickering between them.
The companies may revert to their previous practice of forwarding a note to their shareholders in respect of dividend payments. Such notices to their shareholders by the dividends declaring companies shall go to keep intact compilation of information in relation to dividend receipts by them for income tax and other purposes. This keeps at rest queries by the tax authorities.
Qaisar Mufti (Karachi)
Copyright Business Recorder, 2022
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