Dividend from Equity Shares AY 2021-22

For the Assessment Year 2021-22, dividend income from listed equity shares is now fully taxable, regardless of the amount. Previously, dividends were tax-free up to a certain limit. If your dividend income exceeds £5,000, the paying company will deduct TDS at 10%. You must report this income under the 'Income from Other Sources' schedule in your ITR2 return. Ensure you claim any deducted TDS in the 'TDS' schedule by referencing your Form 26AS.