banner_ad

Dividend tax

Others 288 views 3 replies
I hold ESOP shares from my earlier employer. The company pays regular dividends. On March 12, the company has declared a huge dividend (special dividend) amounting to more than 10L. The payout for the dividend will happened in April 2016. My queries: 1) Which FY should I account this dividend, FY 2015-16, or 2016-17. 2) Also, the company has not declared final dividend. The final dividend gets declared in April 16. How should the final dividend be accounted.?
Replies (3)

as per "AS-9 revenue recognition" state that, dividend from investment in shares are not recognised in the statement of profit and loss account untill a right to receive payment is established.

from your case you said above, that special dividend declared on march 12 of **this year**

  **(assume to be this year)**

so you can show in the books of Fy-2015-16, because, the reason is that you get the right to receive the dividend.

you said above , final dividend is not declared and it will get declared on april-2016, then it will allowed to show in the books of Fy- 2016-17.

Regards....

Thank you for the clarification.  For the second part in which case the final dividend will get declared in April 2016, even as an indivdual taxpayer, do I need to include this to my dividend of FY 2016-17 ?

Yes, you can show the dividend income in the Financial year of 2016-17 as an individual tax payer.

and you can avail the exemption under section 10(34) of income tax act.


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 15 May 2026
Audit Assistant / Article Trainee / Intern

SSGS and Associates

Chennai

CA Inter

View Details
Company
09 June 2026
Accounts Associate

S Madan and CO

New Delhi

Graduate (Any)

View Details
Company
29 May 2026
Company Secretary - Part time

Shaswat initial support private limited

Ahmedabad

CS

View Details
Company
26 May 2026
Senior Accountant cum purchase Manager

Vardhaman Group of India

Pimpri Chinchwad

CA Inter

View Details
Company
ARTICLESHIP 08 June 2026
Internal & Taxation Article

O P Bagla & Co LLP

New Delhi

CA Inter

View Details
Company
Featured 28 May 2026
SEMI QUALIFIED/ CA DROPOUTS/ ARTICLES

T R SOOD & CO

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 23 May 2026
Article Assistants

Acupro Consulting

Gurgaon

CA Inter

View Details
Company
ARTICLESHIP 09 June 2026
Article Trainee

Numbertree LLP

Mumbai

CA Inter

View Details