Dividend tax

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I hold ESOP shares from my earlier employer. The company pays regular dividends. On March 12, the company has declared a huge dividend (special dividend) amounting to more than 10L. The payout for the dividend will happened in April 2016. My queries: 1) Which FY should I account this dividend, FY 2015-16, or 2016-17. 2) Also, the company has not declared final dividend. The final dividend gets declared in April 16. How should the final dividend be accounted.?
Replies (3)

as per "AS-9 revenue recognition" state that, dividend from investment in shares are not recognised in the statement of profit and loss account untill a right to receive payment is established.

from your case you said above, that special dividend declared on march 12 of **this year**

  **(assume to be this year)**

so you can show in the books of Fy-2015-16, because, the reason is that you get the right to receive the dividend.

you said above , final dividend is not declared and it will get declared on april-2016, then it will allowed to show in the books of Fy- 2016-17.

Regards....

Thank you for the clarification.  For the second part in which case the final dividend will get declared in April 2016, even as an indivdual taxpayer, do I need to include this to my dividend of FY 2016-17 ?

Yes, you can show the dividend income in the Financial year of 2016-17 as an individual tax payer.

and you can avail the exemption under section 10(34) of income tax act.


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