Dividend tax date

Dividend is taxable in Income from Other sources. The tax liability is considered depending of method accounting followed by assessee. In case of Mercantile basis of accounting, dividend is taxable in FY 22-23. In case of Receipt basis menthod of accounting , dividend is taxable in FY 23-24.

I am a salaried employee and has some stock market investment. I file tax in ITR 2. Does these different types of accounting applies for ITR 2 also?

Receipt basis method of accounting is allowed for Individuals. However the method of accounting followed must be consistent. And in general taxpayers do follow accrual basis method accounting, so dividend can be shown in FY 23.

And for avoiding mismatch it is better to show income of dividend when the expense is considered by company.

Moreover the dividend income can be traced from 26AS. So income can be shown as per 26AS considering the relevant financial year at which 26AS reflects the dividend income.

Well...

The receipt basis method can be followed by individual if all conditions will be support.

In case the transaction shown in AIS and TIS then its not possible.

In case any TDS deducted then its not possible to show the income in the next year or receipt basis...

So, without confusing the income will be shown in FY 22-23.

May be these conditions Will be satisfied then it can be shown in FY 23-25.