In this article, we are looking at some of the most common questions that come to one’s mind while filing Income Tax. Here we will cover the aggregate of all dividend income taxable under other sources.
From FY 2020-21, is the stated dividend on shares taxable? The dividend amount I got on shares is reported in Form 26AS, but no TDS is shown. If the dividend amount is less than Rs 5,000, is TDS deducted?
Dividends declared and dispersed on or after April 1, 2020, are taxable in the hands of the shareholders who received them. If the amount received in a year exceeds Rs 5,000, the dividend income is subject to a 10% TDS.
When submitting an ITR, you must state the total amount of all dividend income obtained during the fiscal year under the heading “other sources”. The TDS deducted (as shown on Form 26AS) will be granted as a credit against the ultimate tax liability.
My employer's gross salary for AY2021-22 is Rs 8 lakh. In Part B, there is no distinction between basic/DA and HRA. Is it possible to show my salary in several sections in order to claim a refund and file an ITR-1?
Allowances that have not been received must not be claimed as deductions or exemptions. While filing the ITR, one must only fill in the genuine and correct income details. You can invest in tax-saving products to save money on taxes. Individuals who do not get HRA may also recover rent paid under Section 80GG, subject to the limitations and criteria set forth therein.
There are two types of dividends in ITR-2 for AY 2021-22. Which of these applies to dividends received from Indian stocks?
Dividend income from Indian firm shares held as an investment is taxable under the heading “other sources,” and you must disclose it in your income tax return as dividend income [other than (ii)].
My yearly pay is less than Rs 50 lakh. Mutual funds provide long-term financial gains, while tax-free bonds and PPF provide interest. I'm not sure which ITR form to use.
You may include information on income obtained in ITR-2 for FY21. ‘Schedule CG’ records the Long-term capital gains. Whereas ‘Schedule OS’ records interest income, i.e. income from other sources. Moreover, one must record, the Interest income from tax-free bonds and PPF as exempt income in Schedule EI of ITR.
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