Query on taking FTC relief on dividends received in January23 to March23

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This discussion addresses when to declare US dividends received in early 2023 for tax purposes and how to claim Foreign Tax Credit (FTC) relief. Initially, it was suggested to disclose in AY 2023-24 and claim relief. However, due to US fiscal year reporting, it's clarified that income received in February 2023 should be disclosed in AY 2024-25. Evidence for tax withheld, like a TDS deduction statement, is needed for the claim.

NIRAJ SHAHA

NIRAJ SHAHA (Querist)
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21 July 2023 I have a few shares of US listed company received as RSU. I have received a dividend of $28.71 (credited $21.53 and tax withheld $7.18) in February-2023.

The form 1042-S for calendar year 2022, talks about the dividend and tax withheld for the month April-22, July-22 and October-22. Hence, I have proof in order to claim FTC relief on this.

However, my query is, when do we need to disclose the dividend received in February-2023, in AY 2023-24 or in AY 2024-25?
If we need to disclose in AY 2023-24, how can we claim a FTC relief on the tax withheld on dividend received in February-2023?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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21 July 2023 You need to disclose the dividend received in February-2023, in AY 2023-24.
Claim tax relief on the amount deducted.

NIRAJ SHAHA

NIRAJ SHAHA (Querist)
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21 July 2023 Thank you Sir, for your reply.

What document shall I upload as an evidence for the Tax Withheld in February-2023, while filing Form67?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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21 July 2023 You can request for TDS deduction statement online.

NIRAJ SHAHA

NIRAJ SHAHA (Querist)
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21 July 2023 I did check for the same with USA authorities, but, reply was "We provide tax withheld certificate as per USA Fiscal year (i.e. Calendar year).

NIRAJ SHAHA

NIRAJ SHAHA (Querist)
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21 July 2023 I did check for the same with USA authorities, but, reply was "We provide tax withheld certificate as per USA Fiscal year (i.e. Calendar year).

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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22 July 2023 In such a case disclose the income in AY 2024-25.

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