Inward remittance for dividend payment in euro

Income Tax Income from Other Sources
1

I am Resident Indian. I received dividend payment in Euro from my principal company for performance bonus allotted to me.

The bank is asking me to give inward remittance code for crediting this to my account.

Kindly let me know what is inward remittance code starting with P…

Mahesh

2

@Sakshi_Shah1 can you help ?

3

Hey @mdm

Inward Remittance Code is issued by the RBI to classify the nature of a foreign currency transaction. You can find them here - https://www.rbi.org.in/upload/notification/pdfs/52220.pdf

Regarding taxation, foreign dividend is a taxable income in India. You must report it under the head IFOS and pay tax on it at slab rates.

4

Thanks for your reply.

RBI list shows code "“P1407 Receipt of dividends by Indians”

But bank list available in INB for giving instruction does not give this choice. It gives nearest choice as follows:
“P1412 Inward remittance of dividends on account of Portfolio Investment made abroad by India on equity and investment fund shares”

Bank is unhelpful.

Can you guide me please.

5

@Sakshi_Shah1 can you help?

6

Hello @mdm

We can help you with anything on the taxation front. However, this is something your bank will be able to help you the best.