OCI holder. Dividend income only in India. Is tax payable or refundable

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An OCI holder received dividend income in India, including past years where no tax was deducted. The user is asking whether this income needs to be declared for the current financial year and if tax is payable or refundable, especially since they have no other income in India. The advice suggests declaring the dividend income and paying any tax liability, with the possibility of claiming a refund for excess tax paid.

Promod

Promod (Querist)

02 June 2024 two short queries
1. Had lost shares so received dividend income of past years this year. but no tax was deducted on the dividend income credited to the bank account. So does it need to declared as income of this year (FY23-24) and tax to be paid for the AY2425
2. Current FY year dividend was paid by the company into the bank account and tax was deducted at 20%. Total dividend approx 1.1 lacs for current and past years (as per point 1 above). Since no other income besides these dividend income in India. Will tax on dividend be refunded or 20% is payable irrespective of income in India.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

03 June 2024 1. If the dividend income was assessed in preceding year, by declaring the income in relevant ITR, no need to declare it again.
2. Otherwise declare total dividend in current year, pay tax liability over aggregate income and claim excess as refund, if any.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

04 September 2024 Good Luck.

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