Dividend is usually paid on :

Correct option is C

Dividend represents the share of profit distributed to shareholders. It is always paid on the Paid-up Capital, which is the actual amount received by the company from shareholders against the shares issued. Companies cannot pay dividends on capital that has not been paid by shareholders, hence issued or authorised capital is irrelevant for dividend calculation.
Paid-up capital reflects the genuine contribution made by the shareholders and therefore forms the basis for determining the dividend entitlement. Only those who have fully or partly paid for their shares are eligible to receive dividends.
Thus, dividend is paid on the amount actually received by the company, i.e., the Paid-up Capital.
Information Booster
· Dividend is declared by the Board of Directors and approved by shareholders in AGM.
· Dividend is never paid out of capital; it must be paid out of profits (current or accumulated).
· Interim dividend can also be paid during the financial year.
· Unpaid dividends are transferred to the Unpaid Dividend Account within 7 days.
· After 7 years, unpaid dividends move to the Investor Education and Protection Fund (IEPF).
Additional Information (Incorrect Options)
· (a) Issued Capital – This is the portion of authorised capital that the company offers for subscription but dividend is not paid on the amount issued unless it is actually paid.
· (b) Uncalled Capital – This is part of subscribed capital that the company has not demanded yet; dividend cannot be paid on money not received.
· (d) Authorised Capital – This is the maximum share capital a company is permitted to raise; dividend is never calculated on this.