Other Source

372 views
User Avatar

imran@123
47 Points Posted on 23 January 2021
if an individual who earns company dividend last preceeding 4 years and that dividend amt credited to bank in current year? what are the treatment is to be done
if Dividend exceeds 10 lacs
or Dividend utilize to any investments
0 Reply Share Follow
On 23 January 2021 at 21:59 Report
Replies (7)
Quick Summary
This discussion clarifies the tax treatment of company dividends received in the current financial year, even if earned in previous years. Dividends are classified as 'income from other sources'. If dividends distributed on or after April 1, 2020, exceed £10 lakh, the excess is taxable, and you are liable to pay tax on it. While expenses incurred to earn the dividend can be deducted, there are generally no deductions for reinvesting the income. You can claim credit for any Tax Deducted at Source (TDS) against your tax liability.

User Avatar

Chartered Accountant
24588 Points Posted on 23 January 2021
It is income from other sources
Reply
On 23 January 2021 at 22:08
User Avatar

My grammar is 💯 good I
7306 Points Posted on 23 January 2021

the provisions of Section 115-O shall not be applicable if the dividend is distributed on or after 01-04-2020. Thus, if the dividend is distributed on or after 01-04- 2020 the domestic companies shall not liable to pay DDT and, consequently, shareholders shall be liable to pay tax on such dividend income. So from that date you will pay taxes from your end. I’m assuming this because you must be receiving dividends every year and there is TDS on your income. 

The only dividend deductions available is expenses related to raise that dividend income. I did not see any claims available for reinvestment of your income.

https://incometaxindia.gov.in/tutorials/tax%20treatment%20of%20dividend%20received.pdf

 

Reply
On 23 January 2021 at 22:27
User Avatar

Chartered Accountant
86505 Points Posted on 23 January 2021
It is treated as income from other sources.

Refer this link for detailed clarification

https://cleartax.in/s/how-dividends-taxable
Reply
On 23 January 2021 at 22:35
User Avatar

17269 Points Posted on 24 January 2021
If dividend exceeds 10 lakhs, excess is taxable under IFOS.
1 Reply
On 24 January 2021 at 11:01
User Avatar

My grammar is 💯 good I
7306 Points Posted on 24 January 2021

Txs.. I read that section but dividend is already received annually and TDS was collected isn’t it and besides he is not selling it.

1 Reply
On 24 January 2021 at 12:51
User Avatar

Accountant
4533 Points Posted on 25 January 2021
From CURRENT PY it will be taxable. mean taxable from AY 21-22
3 Reply
On 25 January 2021 at 04:22
User Avatar

Chartered Accountant
86505 Points Posted on 25 January 2021
Even though you are not selling it , but Income from Dividend arises theron. Same is taxable in excess of 10 lakh.

Pay tax theron and claim TDS deducted
Reply
On 25 January 2021 at 07:44

Leave a Reply

Post Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Recent Topics :

  1. TDS Code for Salary Payment to Non-Resident Intern
  2. TDS on property
  3. Company data for software
  4. Car purchase to be eligible for ITC
  5. GST Refund on payment to builder
  6. TDS u/s 194Q on electricity supply by DHBVN etc.
  7. Subject: Can I Apply for Fresh GST Registration on
  8. Additional place in GST RC
  9. Company 3 months old, INC-20A not filed, all 3 of
  10. How do I choose the Best GST Lawyers in New Delhi

More recent discussions | Post

Related Topics :

Loading