TDS on Indian ADS dividend

This query is : Resolved

Pradeep N (Querist)
Follow

02 December 2024 Hi,
can someone clarify how to report dividend income from Indian Co. ADS (American Depositary shares) held by a Resident in a brokerage account in US?
So far it is being reported under Sch FSI but with India & PAN as source country. TDS too is being reported in Sch TR & Form 67 but the US broker doesn't issue a TDS cert for this - merely an account Statement showing tax withheld and the gross/net dividends are shown.
The problem is the ADS are held in street name by the broker and not in ultimate beneficiary's name. So wondering how to take credit for this TDS.
thanks

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

03 December 2024 Although the U.S. broker does not issue a TDS certificate, you should retain the account statement that shows the tax withheld along with the gross and net dividends received. This documentation will support your claim for TDS credit during the ITR filing. You must ensure that the broker's statement provides clear details of the tax withheld in your name. If there is ambiguity, you may need to clarify with the broker and get additional documentation to substantiate the claim.

Message likes : 1 times

Pradeep N

Pradeep N (Querist)
Follow

03 December 2024 Thanks for the reply. SHould I report it as foreign income with source country India (and mention PAN) or source country USA (and mention SSN)? When I reported as the former, CPC failed to consider the tax relief as there was no Form 16 or Form 26AS entry for this TDS.

Upgrade to CAclubindia Pro. Subscribe Now!

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

03 December 2024 Correct, as you have not directly received from the company, but through your foreigner agent. So, declare it under foreign income source income USA.

Pradeep N

Pradeep N (Querist)
Follow

03 December 2024 Thanks for the guidance!

Message likes : 1 times

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

03 December 2024 You are welcome.