This discussion clarifies the tax treatment of reinvested dividends. While companies may deduct Dividend Distribution Tax (DDT) before payment, the dividend received or accrued is generally taxable under 'income from other sources'. The user is seeking confirmation on whether reinvested dividends should be included in their total income on the balance sheet and shown as exempted income in their Income Tax Return (ITR).
10 August 2020
DIVIDEND SHOWS BUT NOT RECEIPT MOSTLY IT WAS RE-INVESTED. Will it include in my total income in balance sheet and show it as exempted income in ITR? I am confused and please clear.