Treatment of dividend income from australia in itr?

Tax queries 575 views 2 replies

Have a question regarding dividend income received from Australian companies by Indian resident.

Very much appreciate your help.

(Australian compaines attach Franking credits to Dividends paid to shareholders. Franking Credits are tax paid by companies similar to Dividend Distribution Tax in India. Dividends and Franking credits are included in the Australian tax returns to calculate tax liability for individuals.)

For a resident Indian taxpayer, where should such Dividend be included in the tax return ? 

Dividends are exempt from taxable income - so should that be in exempt income section 

or

should that be part of other income and the franking credits used to claim tax paid against DTAA?

 

Thanks.

-Ram

Replies (2)

Dividend income is exempted only if it is received from domestic companies.Australian companies are not considered as domestic company hence you have to pay tax on the dividend which you received from those company , though you can take double taxation benefit, if you have paid any tax on the dividend income in Australia.

Hi,

Yes you are correct, this will be taxable. As per dtaa with Australia relief will be given on the basis of tax paid in Australia.

 

For any further query PM or mail me.

AJH & CO.

anubhavjain @ ajhco.in


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