TDS ON DIVIDEND SEC 194

This query is : Resolved

Xcelumeja (Querist)
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12 December 2021 mujhe yah janna hai ki, XYZ co ne dividend issues kiya 100 Rs. ka to iski entry kaise aayegi and ispar TDS deduct kiya 10% to tds ki entry kya aayegi. and iska effect itr mai kause section mai show hoga salaried person ke. and iske liye kaunsa FORM hoga as a employer and investor?

please reply.

Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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11 July 2024 Dividend issue hone par aur us par TDS deduct hone par kuch important points hain jo aapko samajhne chahiye:

### Dividend Receipt Entry (Investor ki Books mein):
1. **Dividend Receive Entry**: Jab XYZ company ne dividend issue kiya hai 100 Rs. per share par, to yah entry investor ki books mein aayegi:
- **Dividend A/c Dr.** 100 Rs.
**To XYZ Co.** 100 Rs.

Is entry se dividend receive hua hai, jo company ki books mein credit hoga aur investor ki books mein debit hoga.

### TDS Deduction Entry:
2. **TDS Deduction**: Agar XYZ company ne dividend par TDS deduct kiya hai 10%, to yah entry aapke records mein aayegi:
- **TDS Payable A/c Dr.** 10 Rs.
**To Dividend A/c** 10 Rs.

Is entry se TDS amount record hota hai jo aapko government ko deposit karna hota hai.

### Income Tax Return (ITR) mein Effect:
3. **Income Tax Return**: Salaried person ke liye, dividend income Form 26AS mein show hoti hai jahan se aapko pata chalta hai ki kitna dividend aaya aur kitna TDS deduct hua hai. ITR mein dividend income ko **Income from Other Sources** section mein declare karna hota hai.

### Forms:
4. **Forms**:
- **Form 16A**: Yeh form employer dividend income aur us par deduct kiye gaye TDS ki details provide karta hai.
- **Form 26AS**: Yeh form tax deducted aur deposited ki details deta hai jo aapko apne ITR mein include karna hota hai.

### Conclusion:
Dividend receive aur us par TDS deduct hone ke baad, aapko apne records mein in entries ko maintain karna chahiye aur appropriate forms jaise ki Form 16A aur Form 26AS ko check karna chahiye. Income Tax Return (ITR) file karte waqt, dividend income ko sahi section mein declare karna aur TDS credit ko claim karna jaruri hai. Agar aapko kisi specific situation ya forms ke regarding aur details chahiye, to ek tax professional se consult karna beneficial hoga.