How and where to declare Dividend income from RSU listed in US in ITR2 for AY 2023-24

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:

1. Go to Schedule FSI (Foreign Source Income)

   • This is where you report income earned outside India.

2. Enter details of Foreign Dividend:

   • Country: USA

   • Nature of income: Dividend income

   • Gross amount of dividend received (before TDS) in INR (convert using prescribed exchange rate)

   • Tax deducted abroad (TDS in US, like 25%) also to be reported here

3. Claim Foreign Tax Credit (FTC) under Schedule FSI:

   • 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).

   • Enter the amount of foreign tax paid (TDS at 25%) in the relevant columns.

4. Currency Conversion:

   • Convert USD dividend and TDS amounts to INR using the prescribed RBI/Income Tax exchange rate for the relevant financial year.

5. Total income from foreign sources will be added to your total income.

Important Notes:

• Dividend from foreign RSUs is income from other sources in India, taxable at your slab rate.

• TDS at US end is not a final tax in India, but credit can be claimed against Indian tax liability on that income.

• Keep your Form 1042-S and proof of dividend receipt handy as supporting documents.

• 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?