Gross dividend income to be shown in I-T Return in TDS Schedule

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This query is : Resolved

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This discussion clarifies how to report gross dividend income in your Income Tax Return, particularly when multiple dividend payments occur within a financial year. If a company deducts TDS on a later dividend that brings the total dividend income over Rs 5,000, you must manually adjust the pre-filled figures in your ITR. This ensures the total dividend income reported matches your actual receipts, even if Form 26AS only shows the second dividend amount.

Rammohan

Rammohan (Querist)
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04 June 2022 A company declares a dividend the amount of which is less than Rs 5,000/- in the hands of a shareholder and so there is no TDS.
Subsequently, in the same FY, the company declares a further dividend, taking the total dividend paid to more than Rs 5,000/-, and so there is TDS on the total of both dividends paid. (This TDS is made from the second dividend amount.) In such cases, Form 26AS shows only the second dividend amount paid against which the TDS figure (on both dividends) is shown.

The I-T Return requires us to show the "Corresponding Receipt/Withdrawals Offered" which means that we have to show the total of both dividends whereas the pre-filled figure would be only the second dividend amount on which tax has been deducted. Hence while filling in the TDS schedule, should one correct the pre-filled figure in the ITR to the total of the two dividends?

Form 26AS needs to be corrected by the I-T Dept. correspondingly as otherwise the total of the dividends received as shown in the pre-filled ITR, would not tally with the record of shareholders, which may lead to avoidable correspondence.

CA Puja Sharma

CA Puja Sharma (Expert)
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04 June 2022 Yes, you have to manually correct the dividend figure in the From 26AS while reporting the TDS deduction.

Rammohan

Rammohan (Querist)
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04 June 2022 Thank you for your response, madam.

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