Dividend

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

29 September 2011 Suppose A and B having shares in joint holding, A BEing the 1st holder. Shares are dematerialised in their joint account and dividend gets credited in Joint bank A/c in which B is 1st holder and the Bank A/c is shown in B IT file. Till the date of dematerialisation shares were shown in the IT file of A... Tell me now how to treat this dividend and in which holder's file???

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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30 September 2011 Firstly, dividend is exempt from tax.

Secondly, as far as showing the dividend is concerned, it is normal practice that any income arising from instruments held in joint name is normally treated as the income of the first holder.

Querist : Anonymous

Querist : Anonymous (Querist)

30 September 2011 But the dividend has been credited in Second holder's Bank A/c

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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30 September 2011 The bank account is a joint account as you mentioned in the query. So, the dividend can be included in the books of A.

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