By CHIRAG NANGIA
Is reported dividend on shares taxable from FY 2020-21? In Form 26AS, dividend quantity I received on shares are reflected and there is no TDS shown. Is TDS not deducted if dividend quantity is significantly less than Rs 5,000?
—M M Pisat
Dividends declared and distributed on or immediately after April 1, 2020, are taxable in the hands of recipient shareholders. Such dividend revenue is topic to 10% TDS, if the quantity received exceeds Rs 5,000 in a year. When filing ITR, you have to disclose the aggregate quantity of all dividend revenue earned in the economic year below head ‘other sources’, the TDS so deducted (reflected in Form 26AS) shall be permitted as credit from the final tax liability.
For AY2021-22, my employer has shown gross salary as Rs 8 lakh. There is no break-up for fundamental/DA, HRA in Part B. Can I show salary in numerous components to claim refund and file ITR-1?
—G S Nanda
You need to not claim deduction/ exemption of allowances, not really received. The correct and appropriate particulars of revenue need to be disclosed in ITR. In order to save tax, you may possibly invest in tax-saving instruments. Further, for men and women, who do not get HRA, rent paid may possibly be claimed below Section 80GG, topic to limits and circumstances specified therein.
l In ITR-2 for AY 2021-22, two forms of dividends are provided. Which one is applicable for dividends received from Indian shares?
—Rajendra Thakur
Dividend revenue from shares of an Indian organization, held as investment is taxable below the head ‘other sources’ and you shall be expected to report the exact same below dividend revenue [other than (ii)] in the revenue tax return.
My annual salary is under Rs 50 lakh. I get extended-term capital obtain from mutual funds and interest from tax-absolutely free bonds and PPF. Which ITR type really should I file?
—Neeraj Gupta
For FY21, you may possibly disclose the facts of incomes earned in ITR-2. Income from extended-term capital gains has to be reported below ‘Schedule CG’, interest revenue has to be reported in ‘Schedule OS’, i.e. revenue from ‘other sources’. You need to report interest revenue from tax-absolutely free bonds and PPF in your ITR as exempt revenue in ‘Schedule EI’.
The writer is director, Nangia Andersen India. Send your queries to