Tax on Dividend Income

Income Tax Income from Other Sources
21

@Sakshi_Shah1 can you help?

22

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

23

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

24

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.

25

@Sakshi_Shah1 can you help?

26

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
27

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.

28

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

29

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.

30

Hi

I have a couple of question on the INVIT which please clarify:

  1. Is the TDS applicable for the unitholders at 10% subject to the limit beyond Rs.5,000/- as is applicable for equities and debt instruments where dividends and interests are paid respectively?
  2. The tax exemption component of Dividend and the treasury income are exempted merely from TDS or is it exempt from the tax obligation of the assessee?
31

Hi

Please clarify on the above query

32

Hi @Riya_Jain

Please clarify on the above query

33

Hey @gdshan

Apologies for the delay in responding.

Here is the answer to your queries:

  1. Yes, TDS is required to be deducted by the INVIT on the dividend payments made to unitholders @10%.
  2. The exemption is for both TDS and tax obligations.
34

Hi @CA_Niyati_Mistry

Thanks for clarifying.

1 Like
35

Hi @CA_Niyati_Mistry

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?

36

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.