Dividend on foreign stocks in ITR2

For those who have received dividends from foreign stocks and are filing ITR-2, here are the general steps to take:

 Gross dividend, if any, in foreign currency should be reported in Schedule OS (Income from Other Sources) converted into INR at the prescribed exchange rate.
 If tax has been deducted in the foreign country (eg in the US withholding tax), then relief would be available as Foreign Tax Credit (FTC) in Form 67 with the income reported in Schedule FSI (and relief in Schedule TR) subject to DTAA/Rule 128 conditions.
 In Schedule FA (Foreign Shares/Broker Account) be sure to report your foreign shares/broker account if a Resident and Ordinarily Resident (ROR). Foreign asset disclosure requirements have also been tightened up in recent ITRs.

Members can help direct you regarding the exact schedules and entries when you mention the country (e.g. US), the broker used (e.g. Vested, IBKR, etc.) and whether or not foreign tax was withheld.

Thanks for your response, however this is very generic response. Could you please help me with the responses to my exact queries?

For US stock dividends from ESOP/RSU shares, here is how to report in ITR2.

Schedule OS placement: US dividends go in Schedule OS, Part A, point 1a (Dividends). They should NOT be included under Schedule 2f (DTAA special rates at section 90/91) unless you are specifically claiming a treaty reduced rate that is LOWER than your applicable slab rate.

For most individual ESOP/RSU holders:
- Dividend amounts are taxable at normal slab rates under domestic law.
- The India-US DTAA dividend article allows 15% rate only if beneficial ownership is 10%+ of company shares, which does not apply for typical employee holdings.
- So 2f is not relevant for most employees. Report under 1a only.

Mandatory disclosures:
- Schedule FA: Disclose foreign stock holdings as of December 31 of the previous calendar year. Mandatory regardless of amount.
- Form 67: If US withholding tax was deducted on the dividend (typically 25 to 30% for non-US residents), file Form 67 before filing ITR to claim Foreign Tax Credit.

Convert dividend to INR using SBI TT buying rate on the date of receipt. Keep dividend statements from the broker (Schwab, Fidelity, etc.) as supporting documentation.

For the full India-USA DTAA guide covering dividend treatment, FTC claim via Form 67, and Schedule FA filing, this [India-USA DTAA comprehensive guide](https://taxgarden.in/blog/dtaa-india-usa-double-taxation-avoidance-agreement-guide) covers each disclosure requirement.