Domestic Companies generally declare Interim and Final dividend on Shares. But sometimes declare "Special Dividend" also @ some percent and pay the amount in INR. How are these Special Dividends taxed in the hands of shareholders, and which date is taken as dividend date for taxation purpose, i.e Announcement date, payment date or Ex-Payment date, etc.
Please clarify, if possible with some example.
all dividend is taxable in hands of assessee (unlike earlier)
Yes but question is will in this case Announcement Date or Payment Date will be taken into account for tax purpose declaration in periods.
As per section 194 of the Income tax act 1961 , TDS to be deducted before making any payment or before making any distribution or payment to shareholder of any Dividend , who is resident in India . please refer section 194 of the IT ACT .
My query was will Special Dividend be declared in the period 1st Apr 23 to 15th Jun 23, 16th Jun 23 to 15th Sep 23, 16th Sep 23 to 15th Dec 23, 16th Dec 23 to 15th Mar 24 or from 16th Mar 24 to 31st Mar 24 if A Domestic Company declared it in AGM on 11.01.2024 and credited in my bank on 05.02.2024. In which period in ITR will it be declared as it is SPECIAL DIVIDEND and not Interim or Final Dividend. Hope my query is clear.
As per your query Dividend credited to your bank account on 5/2/2024 , is TDS deducted under section 194 of the Income ta act that time .
No TDS deducted. On which date it will be treated for me to show in ITR, 11th Jan or 5th Feb.
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