Tax on dividend received in trading business

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

09 February 2012 I show my income from share trading under "Income from Business". So my question is do I have to show dividend received by crediting it to P&L A/c, being indirect income or can I show it under "Other Incomes" ?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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10 February 2012 Dividend is shown under the head IFOS but it's not an "other income" as it is incidental to the business.
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It can be shown in profit & loss A/c in the name of Dividend.
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In computation of total income it can be separated from Business income and considered as an exempt income under the head Income From Other Sources.
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