Manager - Finance & Accounts
58223 Points
Joined June 2010
Hey! Here's how you can declare dividend income from foreign RSUs (US) in ITR-2 for AY 2023-24:
Step-by-step to declare Foreign Dividend income (like from US RSUs) in ITR-2:
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Go to Schedule FSI (Foreign Source Income)
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Enter details of Foreign Dividend:
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Country: USA
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Nature of income: Dividend income
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Gross amount of dividend received (before TDS) in INR (convert using prescribed exchange rate)
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Tax deducted abroad (TDS in US, like 25%) also to be reported here
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Claim Foreign Tax Credit (FTC) under Schedule FSI:
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The tax deducted abroad (shown on form 1042-S) can be claimed as FTC in India (subject to the DTAA provisions and maximum credit allowed).
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Enter the amount of foreign tax paid (TDS at 25%) in the relevant columns.
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Currency Conversion:
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Total income from foreign sources will be added to your total income.
Important Notes:
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Dividend from foreign RSUs is income from other sources in India, taxable at your slab rate.
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TDS at US end is not a final tax in India, but credit can be claimed against Indian tax liability on that income.
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Keep your Form 1042-S and proof of dividend receipt handy as supporting documents.
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Also mention dividend income in Schedule OS (Income from other sources) in ITR as a summary but main details are in Schedule FSI.
If you are using online ITR utilities or software, they will have a specific section for Foreign Income under Schedule FSI where you can enter these details.
Would you like me to help you with a sample data entry or a step-wise screenshot guide for the ITR form?