03 July 2023
My daughter has an NRO account which was converted from normal Indian SB account to NRO in Oct-22 as her status changed to NRI. All the money in the NRO account are from Income in India - SB Bank Interest (from old SB A/C & NRO A/C) and Dividends from MF. The mutual funds where bought before conversion to NRO account and the holder status of MF were also changed to NRI in Nov-22. In 26AS under the MF Company there are entries for MF dividends under sec 194K where the TDS is at 10% for MF dividends from Apr-22 to Oct-22 and dividends from Nov-22 to Mar-23 are under sec 196A where TDS is @ 20%. AIS stmt also shows the MF dividend in two groups - one under Sec 194K - Rs 26306/- and other under Sec 196A -Rs 15032. In Schedule OS -under which heads will the two amounts be entered : - Amt of Rs 26306/- given under sec 194K will be entered under the head 'Dividend Income [Oher than (ii)] - Amt of Rs 15032/- given under sec 196A will be entered under the head '115A (1)(a)(i) Dividends in case of non-residents' or 'Income in respect of units of non-resident u/s 115A(1)(a)(iiab)
CAclubindia
