Income tax confusion due to AIS

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!