How are IEPF returned dividens taxed and reported

Income Tax Income from Capital Gains
1

This is based on a real life scenario:

Mr. Prabhu died in 1992. Various shares that he owned are now with IEPF. Naturally, dividends are also with IEPF.

Starting in FY 2020-21, the DDT was abolished and dividends became taxable in the recipient’s hands.

Mohan Prabhu is Mr. Prabhu’s son and is reclaiming shares and dividends from IEPF in 2024!

How does Mohan report dividends received from IEPF on his ITR. How does IEPF report such dividends to the ITD?

Thank you.

Russell

2

Hi @Russell,

Not entirely sure about this one. If the IEPFA deducts TDS on the dividend, the information will be reported to the ITD accordingly.

For reporting in the ITR, one can declare the income under IFOS (Income from other source) and pay as per the applicable slab rate.

3

Thanks for your response @Surbhi_Pal.

Can you also tells me about the simpler case where the parent dies and, through inheritance, an adult child inherits the money in the parent’s savings account. The parent’s bank on being presented with the legal papers (copy of will, etc.) transfers the money to the adult child’s bank account. Is this a reportable transaction in the ITR?

Thank you.

Russell

4

Hey @Russell ,

As per section 56(2) of the Income Tax Act, 1961, any amount received as inheritance is not chargeable to income tax. Therefore it doesn’t need to be reported in the ITR.

5

Thank you, @Sakshi_Jain.