Query regarding dividend income from foreign stock (US)

Income Tax Income from Other Sources
1

Hi Team,

Wanted to understand how do we report dividend income earned from foreign stock (US specifically). Current understanding was -

  • We need to transfer the dividend income within 180 days to Indian bank account
  • Submit Form-67 to declare the same
  • Submitting Form-67 required Form 1042-S of income statement from foreign country
  • But in US Form 1042-S is generate every calendar year

In such as case how to comply with Form-67 requirements, without having Form 1042-S generated?

Kindly suggest if am misunderstanding any aspect above

2

Hey @saurabhmishra,

Dividend income in India has to be reported for the financial year only. To claim the foreign tax credit as per the DTAA, form 67 has to be filed.

But as you mentioned calendar year is followed in the US and hence 1042-S is generated for the same period, you can also attach broker statements along with 1042-S as proof which contain details about the dividend received for the period along with how much tax is withheld.

3

Thanks for the comments Bharti.