Income Tax on Dividends?

15849 views 13 replies

I have some stocks in my portfolio. They have yielded me dividends in FY 2009-2010.

 

-Are dividends taxable in the hands of investor?

 

-Now while filing ITR-2, there is an option that asks for Dividend Income. How do I come to know of exact amount of dividends that were credited to my bank account other than going through all the bank account statements one by one?

Replies (13)

Hi Dear,

Dividend is not taxable in the hands of investor. It is taxed in the hands of Comapny aying dividend by way of dividend distribution tax.

Dividend amount can be tracked using the dividend slip received from company specifying the amount of dividend declared and credited to u'r bank account.

 

Regards,

Manoj

dear friend

dividend income is exempt in the hands of shareholders if it is received from indian company.

Any dividend distributed to holders of equity shares and which suffers tax under section 115O in the hands of the companay ,that distributes such dividends, is exempt under serction 10(34) of trhe Income-tax Act. If you have only dividend income of the naature discussed, it being totally exempt and there remaining no obligation to pay tax, there is no need to file any return of income, disc losing such dividends.

i agree wid manoj's reply....

Originally posted by : RADHIKA JALAN

i agree wid manoj's reply....

 

 

more information n knowledge give ur response(Reply)

dividend income is exempt u/s 10 (34) if its received from a indian comapny,

you can very will disclose this amount in your ITR in the space provided for.

Checking through your bank account for receiving dividends is best way to get the exact dividends received, as far as i know there are no other alternates.

to tax on dividend income which is subject to dividend distribution tax

under exempt income category the same can be disclosed

Thanks, but we need to mention the dividend income in ITR2?

HI......DIVIDENT IS FULLY EXEMPT US 10(34)OF INCOME TAX ..BECAUSE A DIVIDEND DIST.TAX IS ALREADY PAID BY THE CO.

Yes it is compulsory to reflect the Tax free Dividends and LTCG's on Shares in the ITR Forms

what about dividend paid by MUTUAL FUNDS, is it also exempt.

yes need to show the dividend income under exempt income in itr 

Originally posted by : SHRMONEY
what about dividend paid by MUTUAL FUNDS, is it also exempt.

Yes.


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