I have a query on the dividend earned on the US company stocks (received by ESOP or RSU).
a) Should the amount of the US stock dividend clubbed with the Indian stocks dividend and mention in Schedule OS a. Dividends, Gross (ai +aii+aiii)?
b) Do we need to mention the US stock dividend amount in Schedule OS in Section 2.f. Amount included in 1 and 2 above, which is claimed as chargeable at special rates in India as per DTAA (total of column (2) of table below)??
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?
Vakilsearch.com
Chennai
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Vakilsearch.com
Chennai
CA Inter
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