Dividend Reporting

Reporting day is different then the date of actual dividend declared by the company. So report it in FY 2025-26 itself.

Thanks for clearing the confusion!

You are welcome.            

@ Barkha

Check your mandated bank account also to find out when the dividend was actually credited.

Dividend income reporting in ITR for AY 2026-27:

WHERE TO REPORT:

• Dividends from Indian companies: Schedule OS (Other Sources) > Dividends
• Dividends from foreign companies: Schedule OS > Dividends from foreign companies
• Do NOT report in Schedule CG - dividends are taxed as income from other sources, not capital gains

HOW DIVIDENDS ARE TAXED: Under the Income Tax Act, 2025, dividends are taxable at slab rates in the hands of recipient. The old Dividend Distribution Tax (DDT) system is abolished.

TDS ON DIVIDENDS:

• If dividend from a company exceeds Rs 5,000 in a financial year, the company deducts TDS at 10% under Section 194 (domestic) or Section 195 (NRI)
• This TDS credit appears in Form 26AS and can be claimed in ITR

MUTUAL FUND DIVIDENDS:

• Mutual fund dividend (technically called Income Distribution cum Capital Withdrawal or IDCW) is also taxable as income from other sources
• The fund house deducts TDS if payout exceeds Rs 5,000

AIS RECONCILIATION:

• AIS shows all dividends reported by companies. Cross-check AIS against your actual dividend receipts
• If AIS shows dividends you did not receive, mark them as incorrect via AIS feedback before filing

For help with the new standard deduction rules under the new tax regime this year: [Standard Deduction New Tax Regime AY 2026-27](https://taxgarden.in/blog/standard-deduction-75000-new-tax-regime-ay-2026-27)