Dividend income computation in tally

then in end of year we can adjust this tds recfeivable in withdrwals by paying tax so the entry gets settled

For a dividend of ₹6,000 with ₹600 TDS, record the gross dividend income and the TDS receivable separately:

• Bank A/c Dr ₹5,400

TDS Receivable – Dividend A/c Dr ₹600
To Dividend Income A/c ₹6,000

Create “TDS Receivable – Dividend” under Loans & Advances/Current Assets (or your TDS receivable group) and “Dividend Income” under Indirect Income. Match the ₹600 with the dividend TDS entry in Form 26AS/AIS. At year-end, report the gross dividend in your income-tax return and claim ₹600 as TDS credit; it is not an expense or a refund automatically. Final tax depends on your total income and applicable tax regime.

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