OldSchool (None) (50 Points)
26 July 2010I have some stocks in my portfolio. They have yielded me dividends in FY 2009-2010.
-Are dividends taxable in the hands of investor?
-Now while filing ITR-2, there is an option that asks for Dividend Income. How do I come to know of exact amount of dividends that were credited to my bank account other than going through all the bank account statements one by one?
Manoj BG
(Tax Professional and in Service)
(1795 Points)
Replied 27 July 2010
Hi Dear,
Dividend is not taxable in the hands of investor. It is taxed in the hands of Comapny aying dividend by way of dividend distribution tax.
Dividend amount can be tracked using the dividend slip received from company specifying the amount of dividend declared and credited to u'r bank account.
Regards,
Manoj
DT Fundas - Tarun rustagi
( Author)
(1150 Points)
Replied 27 July 2010
dear friend
dividend income is exempt in the hands of shareholders if it is received from indian company.
venkatraman shrinivas
(Tax consultant/Tax Advocate In Practice.)
(313 Points)
Replied 27 July 2010
Any dividend distributed to holders of equity shares and which suffers tax under section 115O in the hands of the companay ,that distributes such dividends, is exempt under serction 10(34) of trhe Income-tax Act. If you have only dividend income of the naature discussed, it being totally exempt and there remaining no obligation to pay tax, there is no need to file any return of income, disc losing such dividends.
| Originally posted by : RADHIKA JALAN | ||
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i agree wid manoj's reply.... |
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more information n knowledge give ur response(Reply)
shyam sundar
(Article Assisstant)
(183 Points)
Replied 27 July 2010
dividend income is exempt u/s 10 (34) if its received from a indian comapny,
you can very will disclose this amount in your ITR in the space provided for.
Checking through your bank account for receiving dividends is best way to get the exact dividends received, as far as i know there are no other alternates.
hyponkshe
(chartered accountants)
(73 Points)
Replied 27 July 2010
to tax on dividend income which is subject to dividend distribution tax
under exempt income category the same can be disclosed
OldSchool
(None)
(50 Points)
Replied 28 July 2010
Thanks, but we need to mention the dividend income in ITR2?
kishan
(e)
(61 Points)
Replied 29 July 2010
HI......DIVIDENT IS FULLY EXEMPT US 10(34)OF INCOME TAX ..BECAUSE A DIVIDEND DIST.TAX IS ALREADY PAID BY THE CO.
Rishab
(A.C.A.)
(155 Points)
Replied 29 July 2010
Yes it is compulsory to reflect the Tax free Dividends and LTCG's on Shares in the ITR Forms
SHRMONEY
(solve legal finance problems - shrmoney@gmail.com)
(148 Points)
Replied 19 June 2018
what about dividend paid by MUTUAL FUNDS, is it also exempt.
CA Naveen Chand
(Chartered Accountant)
(12729 Points)
Replied 19 June 2018
yes need to show the dividend income under exempt income in itr
CAclubindia
