Dividend received on Nasdaq stock.

This query is : Resolved

Krishna (Querist)
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05 December 2021 Hello Respected CA,

I hold some Foreign stocks Listed in Nasdaq. Now since it is a foreign holding I need to fill schedule FA Table A3.

Table A3 have 2 additional details. 1) For capital Gain(Total gross proceed from sale or redemption of investment during the period) 2) Any dividends earned (Total gross amount paid/credited with respect to the holding during the period)

Now as per the document, Schedule FA details need to be entered as per Accounting period and for which it is Jan - Dec since US follow calendar year. Also dividend received were already tax deducted. But since we need to show the dividend in "Schedule OS" with special rate and it is DTAA case where we also need to show quarterly breakup (in point 10).

Query is Should we show dividend of April - March or Jan - Dec?
Also Schedule FA should we add Jan - Dec or April - March dividend?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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05 December 2021 AT BOTH THE PLACES DETAILS ARE TO BE PROVIDED FROM APRIL TO MARCH, i.e. FOR RELEVANT FINANCIAL YEAR.

Krishna

Krishna (Querist)
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05 December 2021 Irrespective of the case US have calendar year and also the Form 1042 - S provided by them is Jan - Dec which I will use to upload in Form 67 to claim Foreign tax credit?

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Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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10 December 2021 Yes, in Form 67 you can give break up of April to Dec. from the Form 1042 -S. Indian Standard works on financial year basis.

Krishna

Krishna (Querist)
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16 December 2021 Hello Sir,

One more query, regarding the Ttbr rate to apply while calculating.

In Schedule OS when we need to enter the details of dividend received, we need to convert that into INR first.

So which month Ttbr we should apply? Should it be when we received the dividend that date or it should be Ttbr rate of financial year end date (March 31)?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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16 December 2021 If not transferred to Indian account, convert it it as on March 31st.

Krishna

Krishna (Querist)
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16 December 2021 It is received in Brokers cash reserve account and not to any Indian Bank, and Later on when it accumulate I manually transfer the amount of my choice to Indian bank account.