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Dividend income above Rs 5000 should be included while computing total income or not ?

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mukukou

article

1 Points Posted on 13 November 2022

while computing total income should we include
dividend received by Indian company above 5000 being subjected to income tax as it attracts TDS from FY 21 onwards or should it be exempted while computing total income ?

Replies (6)

Quick Summary

This discussion clarifies whether dividend income, particularly amounts above Rs 5000, needs to be included when calculating total income for tax purposes. The consensus is that all dividend income received from Indian companies is now taxable under the 'Income from Other Sources' (IFOS) head, regardless of the amount. While TDS (Tax Deducted at Source) may apply, the dividend must still be declared in your Income Tax Return (ITR).

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

212444 Points Posted on 13 November 2022

Its taxable u/h. IFOS, hence any dividend income should be declared for assessment. While you can claim the TDS in ITR.

sabyasachi mukherjee

Profession Business

28246 Points Posted on 13 November 2022

Dividend above rs.5000 which section mentions that?

Amit sharma

36 Points Posted on 13 November 2022

Previously the limit was 5000 but now it is removed.Now any income received as a dividend shall be taxable under IOS.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

212444 Points Posted on 13 November 2022

As per Section 194, TDS shall be applicable to dividends distributed, declared or paid on or after 01-04-2020, an Indian company shall deduct tax at the rate of 10% from dividend distributed to the resident shareholders if the aggregate amount of dividend distributed or paid during the financial year to a shareholder exceeds Rs. 5,000.