02 August 2020
QUESTION WAS ASKED FOR THE F.Y. 2019-20 AND NOT F.Y. 2020-21. DIVIDEND EARNING SHOWS IN NSDL CAS BUT THE AMOUNT NOT RECEIVED IN CASH. WILL THE AMOUNT TO BE TAKEN IN MY TOTAL INCOME OR THE AMOUNT TO BE SHOWN AS EXEMPTED INCOME IN ITR FOR REPORTING PURPOSE ONLY?
04 August 2020
Dividend on which company has paid DDT shall be exempt in the hands of shareholder even if it is received in FY 2020-21 as it declared in FY 2019-20.
Regards
CA. Raj Doshi
R C D & Co.
Chartered Accountants
09 August 2020
Currently, DDT is paid by the companies before paying dividend to their shareholders. Therefore, it made dividend received by the shareholders of the company of tax-free in their hands. Further, taxpayers earning dividend income of more than Rs 10 lakh are required to pay tax at the rate of 10 per cent.
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