Income tax confusion due to AIS

1. I sold shares on 30.3.2021 to get benefit of exemption of 150000. But I received payment on 5.4.2021.
I was thinking that the benefit will be available only in AY 2022-23. But now AIS shows the transaction as of 30.3.21. Should I claim this in AY2021-22?
2. In addition, AIS also shows a dividend of Rs 4500 'reported on 30.6.2021', which was actually paid to me on 3.7.2021. According to me, this applies to FY 2022-23. But in that case AIS should not have given it this time. Should I file a feedback?
Kindly help.

Replies (8)
Quick Summary
This discussion addresses confusion arising from the Annual Information Statement (AIS) regarding income tax. A user is unsure whether to claim an exemption for a share sale in AY 2021-22 or AY 2022-23, as the sale occurred on 30.3.2021 but payment was received on 5.4.2021. The consensus is that the transaction date (30.3.2021) is key for AY 2021-22, aligning with the accrual system. Similarly, dividend income reported in AIS is considered based on the declaration date, not the payment receipt date, allowing for some flexibility in claiming it.

1. The transaction pertains to AY 2021-22.

 

2. Check whether the dividend was declared in FY 2020-21. If so, it will be assessed in AY 2021.22

 

Thanks for the reply, sir.

That means, year of receipt of money in account is not important but year of transaction (1st case) and year of declaration (2nd case) is the year to be considered?

In government, the salary of March is credited after 31st March while for other months, it is credited before the last date of the month. By your logic, the March salary should be added to previous year's salary. But in form 16, it is always in the year it is received.

Sorry for bothering. This parallel may not be right. My ignorance.

Yes. It is called mercantile system (accrual) of accounting. Based on it SFT are filed by the entities.

As per the present ruling, even that would change. At least it will be accounted as per accrual system.

Thanks indeed. Things are settled.

Just one post-facto clarification if you could please.

I filed ITR recently. It gave many errors and when I wanted to resolve them, it said, whether I would like to take things forward to next year. These might have been because dividend/ interest paying companies might have informed IT Deptt in the next FY for payments due for the previous FY. Looks so?

It is the option given to assessee, to declare the dividend income in either of the year for assessment, because the TDS return filed by the companies for Q4 quarter be in June/July of next FY.

 

Thanks Rambhia sahab for all the time you took to answer my queries. So grateful!

Have a good day!

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