Advance tax on dividend income

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SHAHNH (Querist)
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24 June 2023 Hello Experts,

Is the advance tax applicable to be paid on Dividend Income for A.Y.: 2023-24

Thanks in advance

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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24 June 2023 Yes, advance tax payable on dividend income.

SHAHNH

SHAHNH (Querist)
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25 June 2023 In case of failure to pay full advance tax due; TDS is already deducted-will it be liable for interest or penalties at the time of filing returns.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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25 June 2023 Interest applicable in case the 90% of taxes are not paid through TDS and advance tax and the shortfall exceed Rs 10,000

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SHAHNH

SHAHNH (Querist)
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26 June 2023 If the shortfall in advance tax is on account of Dividend Income, no interest under Section 234C shall be charged. Please interpret & confirm it for me as feedback received from other sources.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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26 June 2023 Provisions for advance tax are applicable if a taxpayer's total tax liability is equal to or more than Rs. 10,000 in a given FY. Penalty and interest are levied if there is short-payment or non-payment of advance tax liability.

SHAHNH

SHAHNH (Querist)
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26 June 2023 Thanks for your quick revert.
As per other sources getting a feedback as under;
Income referred to in Section 115BBDA ( i.e: Dividend received from Domestic Companies exceeding 10 lakhs ) As immediate TDS is deducted as advance tax , interest will not be levied as it comes under Section 234C
Please guide in the matter 🙏🏻

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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26 June 2023 Section 115BBDA is a provision that imposes a flat tax rate of 10% on dividend income exceeding Rs. 10 lakh received by resident individuals and HUFs.
This is in addition to normal tax payable.

Fill ITR and check interest payable.

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