{"id":9070,"date":"2021-10-20T17:26:42","date_gmt":"2021-10-20T11:56:42","guid":{"rendered":"https:\/\/scholarsclasses.com\/blog\/?p=9070"},"modified":"2025-10-09T15:28:06","modified_gmt":"2025-10-09T09:58:06","slug":"difference-between-final-dividend-and-interim-dividend","status":"publish","type":"post","link":"https:\/\/scholarsclasses.com\/blog\/difference-between-final-dividend-and-interim-dividend\/","title":{"rendered":"Difference Between Final Dividend and Interim Dividend (7 Points) | Important Article"},"content":{"rendered":"\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_81 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69de2e2a7a52a\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69de2e2a7a52a\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/scholarsclasses.com\/blog\/difference-between-final-dividend-and-interim-dividend\/#Difference_Between_Final_Dividend_and_Interim_Dividend\" >Difference Between Final Dividend and Interim Dividend<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/scholarsclasses.com\/blog\/difference-between-final-dividend-and-interim-dividend\/#Meaning_of_Final_Dividend\" >Meaning of Final Dividend<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/scholarsclasses.com\/blog\/difference-between-final-dividend-and-interim-dividend\/#Definition\" >Definition<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/scholarsclasses.com\/blog\/difference-between-final-dividend-and-interim-dividend\/#Meaning_of_Interim_Dividend\" >Meaning of Interim Dividend<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/scholarsclasses.com\/blog\/difference-between-final-dividend-and-interim-dividend\/#Difference_Between_Final_Dividend_and_Interim_Dividend-2\" >Difference Between Final Dividend and Interim Dividend<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading has-text-align-center has-black-color has-text-color\"><span class=\"ez-toc-section\" id=\"Difference_Between_Final_Dividend_and_Interim_Dividend\"><\/span><strong>Difference Between Final Dividend and Interim Dividend<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image size-large is-resized\"><img decoding=\"async\" width=\"1024\" height=\"576\" data-src=\"https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/10\/Difference-Between-Final-Dividend-and-Interim-Dividend-1024x576.jpg\" alt=\"Difference Between Final Dividend and Interim Dividend\" class=\"wp-image-9090 lazyload\" style=\"--smush-placeholder-width: 1024px; --smush-placeholder-aspect-ratio: 1024\/576;width:768px;height:auto\" title=\"\" data-srcset=\"https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/10\/Difference-Between-Final-Dividend-and-Interim-Dividend-1024x576.jpg 1024w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/10\/Difference-Between-Final-Dividend-and-Interim-Dividend-300x169.jpg 300w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/10\/Difference-Between-Final-Dividend-and-Interim-Dividend-768x432.jpg 768w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/10\/Difference-Between-Final-Dividend-and-Interim-Dividend-1536x864.jpg 1536w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/10\/Difference-Between-Final-Dividend-and-Interim-Dividend-640x360.jpg 640w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/10\/Difference-Between-Final-Dividend-and-Interim-Dividend.jpg 1920w\" data-sizes=\"(max-width: 1024px) 100vw, 1024px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" \/><figcaption class=\"wp-element-caption\">Difference Between Final Dividend and Interim Dividend<\/figcaption><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Meaning_of_Final_Dividend\"><\/span><strong>Meaning of <strong><strong><strong><strong>Final <a href=\"https:\/\/www.icsi.edu\/media\/portals\/0\/DIVIDEND.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">Dividend<\/a><\/strong><\/strong><\/strong><\/strong><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>It is that part of the profits of the company which is distributed amongst its shareholders. Dividend is a share in distributable profits of the company to which the shareholder is entitled when it is formally declared b the company.&#8217;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Definition\"><\/span>Definition<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>The Institute of Chartered Accountants of India has defined Dividend as, \u201c<strong><em>a distribution to shareholders out of profits or reserves available for this purpose.<\/em><\/strong>\u201d<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Meaning_of_Interim_Dividend\"><\/span><strong>Meaning of <strong><strong><strong><strong><strong>Interim Dividend<\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong>Dividend declared b the Board of Directors between two Annual General Meetings is called Interim Dividend. <\/strong>Interim dividend is paid in the middle of the accounting year i.e. before the finalization of annual accounts for the year. Opinion of the company&#8217;s Auditors should be taken before declaring Interim Dividend.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/scholarsclasses.com\/blog\/difference-between-fixed-capital-and-working-capital\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/difference-between-fixed-capital-and-working-capital\/\" target=\"_blank\" rel=\"noreferrer noopener\">Difference Between Fixed Capital and Working Capital<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/scholarsclasses.com\/blog\/difference-between-owned-capital-and-borrowed-capital\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/difference-between-owned-capital-and-borrowed-capital\/\" target=\"_blank\" rel=\"noreferrer noopener\">Difference Between Owned Capital and Borrowed Capital<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/scholarsclasses.com\/blog\/difference-between-debenture-and-share\/\" target=\"_blank\" rel=\"noreferrer noopener\">Difference Between Debenture and Share<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/scholarsclasses.com\/blog\/difference-between-preference-shares-and-equity-shares\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/difference-between-preference-shares-and-equity-shares\/\" target=\"_blank\" rel=\"noreferrer noopener\">Difference Between Preference Shares and Equity Shares<\/a><\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading has-text-align-center\"><span class=\"ez-toc-section\" id=\"Difference_Between_Final_Dividend_and_Interim_Dividend-2\"><\/span><strong><strong><strong><strong>Difference Between Final Dividend and Interim Dividend<\/strong><\/strong><\/strong><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Points<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\"><strong><strong><strong><strong>Final Dividend<\/strong><\/strong><\/strong><\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\"><strong><strong><strong><strong>Interim Dividend<\/strong><\/strong><\/strong><\/strong><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">1) Meaning<\/td><td class=\"has-text-align-center\" data-align=\"center\">It is declared and paid after the<br>close of the financial year.<\/td><td class=\"has-text-align-center\" data-align=\"center\">It is declared and paid between<br>two AGMs of an accounting<br>year.<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">2) Who Declares<\/td><td class=\"has-text-align-center\" data-align=\"center\">It is decided and recommended<br>by the Board of Directors. It is<br>declared by the shareholders in<br>the AGM.<\/td><td class=\"has-text-align-center\" data-align=\"center\">It is decided and declared by<br>the Board of Directors in the<br>Board Meeting.<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">3) Authorization<\/td><td class=\"has-text-align-center\" data-align=\"center\">It\u2019s declaration does not need<br>authorization by Articles of<br>Association.<\/td><td class=\"has-text-align-center\" data-align=\"center\">It can be declared only if<br>Articles of Association permits<br>its declaration.<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">4) When Declared<\/td><td class=\"has-text-align-center\" data-align=\"center\">It is declared at the Annual<br>General Meeting of the company<\/td><td class=\"has-text-align-center\" data-align=\"center\">It is declared between two<br>Annual General Meetings of the<br>company.<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">5) Rate<\/td><td class=\"has-text-align-center\" data-align=\"center\">Rate of final dividend is always<br>higher than Interim Dividend.<\/td><td class=\"has-text-align-center\" data-align=\"center\">Rate of Interim dividend is lower than final dividend.<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">6) Source<\/td><td class=\"has-text-align-center\" data-align=\"center\">It is declared from different<br>sources like; current year\u2019s<br>profits, free reserves, capital<br>profits, Mone provided by<br>Govt. for dividend, etc.<\/td><td class=\"has-text-align-center\" data-align=\"center\">It is declared out of profits of<br>the current accounting year.<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">7) Accounting Treatment \/ Aspect<\/td><td class=\"has-text-align-center\" data-align=\"center\">It is declared only after the<br>accounts of the year are prepared<br>and finalized.<\/td><td class=\"has-text-align-center\" data-align=\"center\">It is declared before preparation<br>of the final accounts of the<br>company<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/scholarsclasses.com\/blog\/difference-between-dematerialisation-and-rematerialisation\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/difference-between-dematerialisation-and-rematerialisation\/\" target=\"_blank\" rel=\"noreferrer noopener\">Difference between Dematerialisation and Rematerialisation<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/scholarsclasses.com\/blog\/difference-between-final-dividend-and-interim-dividend\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/difference-between-final-dividend-and-interim-dividend\/\" target=\"_blank\" rel=\"noreferrer noopener\">Difference Between Final dividend and Interim Dividend<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/scholarsclasses.com\/blog\/difference-between-dividend-and-interest\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/difference-between-dividend-and-interest\/\" target=\"_blank\" rel=\"noreferrer noopener\">Difference Between Dividend and Interest<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/scholarsclasses.com\/blog\/difference-between-primary-and-secondary-market\/\" target=\"_blank\" rel=\"noreferrer noopener\">Difference Between Primary and Secondary Market<\/a><\/li>\n<\/ul>\n\n\n\n<p><strong>Learn the chapters on TYBCOM from our <a href=\"https:\/\/studio.youtube.com\/channel\/UCExY0hxogv75WdPK1MFS3fw\" data-type=\"link\" data-id=\"https:\/\/studio.youtube.com\/channel\/UCExY0hxogv75WdPK1MFS3fw\" target=\"_blank\" rel=\"noopener\">YouTube channel<\/a>.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#46;&#46;&#46;<\/p>\n","protected":false},"author":1,"featured_media":9090,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[10],"tags":[3359],"class_list":["post-9070","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-educational-blogs","tag-difference-between-final-dividend-and-interim-dividend"],"_links":{"self":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts\/9070","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/comments?post=9070"}],"version-history":[{"count":5,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts\/9070\/revisions"}],"predecessor-version":[{"id":39664,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts\/9070\/revisions\/39664"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/media\/9090"}],"wp:attachment":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/media?parent=9070"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/categories?post=9070"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/tags?post=9070"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}