if an individual who earns company dividend last preceeding 4 years and that dividend amt credited to bank in current year? what are the treatment is to be done
if Dividend exceeds 10 lacs
or Dividend utilize to any investments
7 Replies
CA. Sourav Sarkar
(Chartered Accountant )
(24583 Points)
Replied 23 January 2021
It is income from other sources
yasaswi gomes
(My grammar is 💯 good I)
(7290 Points)
Replied 23 January 2021
the provisions of Section 115-O shall not be applicable if the dividend is distributed on or after 01-04-2020. Thus, if the dividend is distributed on or after 01-04- 2020 the domestic companies shall not liable to pay DDT and, consequently, shareholders shall be liable to pay tax on such dividend income. So from that date you will pay taxes from your end. I’m assuming this because you must be receiving dividends every year and there is TDS on your income.
The only dividend deductions available is expenses related to raise that dividend income. I did not see any claims available for reinvestment of your income.
https://incometaxindia.gov.in/tutorials/tax%20treatment%20of%20dividend%20received.pdf
CA Rashmi Gandhi
(Chartered Accountant)
(86323 Points)
Replied 23 January 2021
It is treated as income from other sources.
Refer this link for detailed clarification
https://cleartax.in/s/how-dividends-taxable
Refer this link for detailed clarification
https://cleartax.in/s/how-dividends-taxable
Kapadia Pravin
(17259 Points)
Replied 24 January 2021
If dividend exceeds 10 lakhs, excess is taxable under IFOS.
yasaswi gomes
(My grammar is 💯 good I)
(7290 Points)
Replied 24 January 2021
Txs.. I read that section but dividend is already received annually and TDS was collected isn’t it and besides he is not selling it.
Krishna Chaudhary
(Accountant)
(4531 Points)
Replied 25 January 2021
From CURRENT PY it will be taxable. mean taxable from AY 21-22
CA Rashmi Gandhi
(Chartered Accountant)
(86323 Points)
Replied 25 January 2021
Even though you are not selling it , but Income from Dividend arises theron. Same is taxable in excess of 10 lakh.
Pay tax theron and claim TDS deducted
Pay tax theron and claim TDS deducted
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