Confusion in Dividend tax rule

Income Tax Income from Capital Gains
1

Rule : Dividend is taxable if it exceeds limit of 5000.

Suppose in FY 2023-24, if i get dividends like

1500
500
800
1200
5300

Then i will pay tax on 1500+500+800+1200+5300= 9300
or
only on 5300

Please tell which amount of dividend i will enter at time of itr filling: 9300 or 5300 ?

2

Enter Rs. 9300/- as taxable amount of Income from dividend.
(Rs 5000/- limit is not for exemption from tax but for TDS by the deductor. )

3

Hi @Kuldeep_Singh

The limit of 5000 is for deduction of TDS under section 194 and not for the purpose of taxation. You need to disclose the entire amount of 9300 in Schedule-OS in ITR. Hope this clarifies. For further assistance, you can connect with me on my instagram handle @FinTaxSnippets.

Thanks

4

Hi @Kuldeep_Singh,

The limit for ₹5000 is for TDS deduction, which means the company will deduct TDS if dividend issued exceeds ₹5k. But, the entire dividend is taxable as per your slab rate. Hence, you’ll have to enter ₹9300 as your dividend income.