Resident Individual - Overseas Dividends TDS

Hi,

My query is regarding overseas dividends earned by a resident individual from investments made under the automatic route of remitting US$200,000 in a financial year.

In case the individual has made investments in overseas listed securities and tax on the dividend has been withheld in the foreign country, how can the resident individual ensure that the said TDS of the dividends in the foreign country are also captured on his/her form 26AS.

In case, the same cannot be undertaken, can the resident individual still highlight the TDS on his/her form IT -2 when filing the return?

Appreciate your views.

Best regards, Jatin

Replies (3)

 

SInce tax is withholded in a foreign country it is not possible that transaction is reflected in 26AS. Obviously No TDS return to NSDL no reflection in 26AS.
 
Yes a resident assessee can show in his return of income by producing a certificate of withholding tax of foreign country. The production of certificate shall all depend upon the internal procedures of our income tax and their income tax.

Follow up question - the overseas dividend has been withheld at varying tax rates. Switzerland 35% and USA 15%.

While filing the return, since resident individual assessee is in the highest tax bracket in India, is the tax liability on foreign dividends at 30%+surcharge or 115A(1)(a) at 20%.

115A(1)(a) is for payments made from India covered under section 195 and not vice versa.

 

The rate as correctly spelt by you shall be 30% + surcharge.

 

Anuj

+91-9810106211

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