Dividend year confusion

1. Give feedback in AIS report that particular dividends pertains to preceding year/s

2. Consider all the dividends pertaining to current year for assessment, including the one yet to receive.

Let me summarise based on advice received from experts so that others can benefit:

* If dividend is declared and paid in 2021-22, it will be included in that year's income: it is simple.

* If dividend is declared in 2021-22 but paid next year, it will still be included in the income of 2021-22.

* If dividend is declared in 2021-22 but paid after filing return for that year, you can include that in next year's return.

Any learned expert has to clarify, or this is final?

Dividend is taxed on due or receipt basis, whichever is earlier.

[section 8 of Income Tax Act]

You have not clearly understood Mercantile system of accounting, hence not correctly interpreted third point.

Sir, I am not a CA. What I understand is that dividend is to be considered for the year it belongs to, as per mercantile system. That is now clear. Even if the dividend is paid in the next year, it will be taxed for the year it belonged. I hope, I am correct so far.

But issue comes when companies keep crediting dividend much later or they do not deposit it in account and it is noticed after the return has been filed. What should one do in such a case?

Thank you very much in advance.

I am perhaps wrong again. The correct position seems to be like this:

If dividend for 20-21 is paid in 21-22, it will be included in fy 21-22 income.

If interim div is paid for 21-22 within fy 21-22, it will also be included in fy 21-22 income.

So, in fy 21-22,

div received for 20-21 is to be included in income.

any interim div for 21-22 paid within 21-22 will also be included.

is this correct?

So, in fy 21-22,

div received for 20-21 is to be included in income.

any interim div for 21-22 paid within 21-22 will also be included.

is this correct?