Individual - dividends from income (debt) fund - tax liabili
This query is : Resolved
14 July 2013
My wife earned dividend from Income (Debt) fund in 2012-13 financial year. Account statement from the fund house shows the dividend amount reinvested but does not show TDS for the same.
When I inquired with the fund house about TDS, their investment advisor told me that dividend distribution tax has already been deducted and paid to IT department and therefore my wife does not have to pay tax on the dividend reinvested.
I thank you for clarifying my following questions:
1) Is the advisor's above mentioned statement correct that my wife does not have to pay any tax on the dividend income.
2) Does my wife have to report the dividend income in her return (as income exempt from tax) and if so in which schedule or section of the ITR2 should she show it.
Regards,
Narayan
When I inquired with the fund house about TDS, their investment advisor told me that dividend distribution tax has already been deducted and paid to IT department and therefore my wife does not have to pay tax on the dividend reinvested.
I thank you for clarifying my following questions:
1) Is the advisor's above mentioned statement correct that my wife does not have to pay any tax on the dividend income.
2) Does my wife have to report the dividend income in her return (as income exempt from tax) and if so in which schedule or section of the ITR2 should she show it.
Regards,
Narayan
14 July 2013
Hi,
(1) If DDT has been paid, no tax to be paid on dividend income by dividend receiver.
(2)You should report exempt income also in IT return. It should be shown under the head " Income from other sources".
(1) If DDT has been paid, no tax to be paid on dividend income by dividend receiver.
(2)You should report exempt income also in IT return. It should be shown under the head " Income from other sources".
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