I am an investor holding shares of a Company. The dividend I received is less than the amount I should have received.
Hey @rajat1993,
You have received less dividend since the Company has deducted TDS on dividend and credited the remaining amount to your account.
Under Budget 2020, the Finance Minister had introduced provisions to deduct TDS on the dividend.
- Sec 194 - A Company should deduct TDS at 10% on dividend paid on equity shares if the dividend amount exceeds INR 5,000.
- Sec 194K - An AMC should deduct TDS at 10% on dividend paid on equity mutual funds if the dividend amount exceeds INR 5,000
As per the above provisions, the Company / AMC would deduct TDS on dividend paid on or after 1st April 2020. Due to COVID-19, the TDS Rate was reduced to 7.5% for the remaining part of FY 2020-21.
Read more here - TDS on Dividend paid in FY 2020-21
As per the new TDS sections, the TDS Rate is 10% on dividend income. I have received email from my Company for deduction of TDS on dividend. Why does the email mention 7.5%?
Hey Tanya,
The Finance Minister abolished DDT under Budget 2020. She also introduced the following provisions to deduct TDS on dividends.
- Sec 194 - A Company should deduct TDS at 10% on dividend paid on equity shares if the dividend amount exceeds INR 5,000.
- Sec 194K - An AMC should deduct TDS at 10% on dividend paid on equity mutual funds if the dividend amount exceeds INR 5,000.
On 13th May 2020, the government slashed TDS Rates under certain sections by 25% on account of COVID-19. Thus, the TDS Rate under Section 194 (TDS on Dividend on Equity Shares) and Section 194K (TDS on Dividend on Equity Mutual Funds) was reduced from 10% to 7.5% for the remaining part of FY 2020-21.
Have you received an email for deduction of TDS on dividend - Read more here - TDS on Dividend paid in FY 2020-21
do company deduct TDS while paying dividend ? how do i file form 15h/g and ask the company not to deduct the TDS ?
Hi @HIREiN
Yes. If the dividend amount exceeds INR 5,000 in the financial year, it is mandatory for the Company to deduct TDS on dividend. However, many companies deduct TDS even if the amount does not exceed the said limit.
You can either download the format of Form 15G, fill it and submit it to the deductor or go the website of the deductor and file Form 15G online. You can download the latest format of Form 15G here - Download Form 15G
Can you let me know how that credit can be claimed, while filing ITR, what do I need to do exactly to claim back the TDS. Please be a bit more elaborate
Hi , I have some units of IRB INVIT fund. The income which I receive from it is not dividend but some thing else, namely “194LBA-Certain income from units of a business trust” (got this info from the form 16A that IRB invit sent me for TDS).
I want to know where should I show this income, is it counted as dividend, can I put it under dividends tab in quick , or is it treated separately somehow. Kindly let me know on this in detail.
Hey @Sheirsh_Saxena
To claim the credit of TDS deducted while filing the ITR, follow these steps:
- Check if the TDS Credit reflects in AIS (Annual Information Statement)
- If the TDS Credit is reflected, you can claim the same in the ITR
- Report income in the ITR and fill up details of TDS Credit in Schedule TDS. On the calculation of the tax liability, the refund will get computed in the ITR
- If the TDS was deducted on your income but the TDS Credit is not reflected in AIS, you must ask the deductor to revise the TDS Return
Hey @Sheirsh_Saxena
TDS u/s 194LBA is deducted by a Business Trust on distribution of Interest to its unit holders. Such income must be reported as Interest Income in IFOS and TDS credit must reported in Schedule TDS of the ITR.
Can you let me know under which section exactly do I have to fill it, I file taxes through quick only, so where in QUicko should I mention the amount received
Hello @Sheirsh_Saxena
Here are the steps for Adding Interest Income in IFOS.
And for TDS credit, it should reflect once you upload your Form 26AS. If it doesn’t then you can add manually as well under the tab Add Tax Credits.
If you need further assistance you can raise a ticket on help center and our team will help you.
Hi
Please clarify on the above query
Please clarify on where the Repayment of SPV Debt should be reflected in the ITR. As I understand, this is not an income but appropriation of debt. Should tax free treasury income and dividend(non-tax) be reflected undere Exempt Income?
Hello @gdshan,
The repayment of debt will not be taxable unless it exceeds the purchase cost of units. Once the repayment exceeds the purchase cost, it will be considered as income and taxed as Capital Gains.