How dividend income is taxed in India?:No TDS on up to ₹10,000 rewards; Check step-by-step guide how to file ITR on such receipts? – CarbonMedia
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How dividend income is taxed in India?:No TDS on up to ₹10,000 rewards; Check step-by-step guide how to file ITR on such receipts?

Stock market investors are required to pay both income tax and TDS on dividend income received from a company. TDS is automatically levied on the shareholder's income but above a certain limit. Additionally, the investors are required to pay tax on dividend income while filing Income Tax Return (ITR). Basics of tax on dividend income in India: Two types of taxes are levied on dividend income: 1. TDS The company whose shares one has invested in levies an upfront TDS of 10% on the dividend distributed to that individual above ₹10,000 in a particular year. 2. Income Tax That individual is also required to pay income tax on the remaining dividend amount (left after deduction of tax) as per his applicable tax slab. Step-by-step guide how to show dividend income in ITR? The assessee is required to add the total dividend income received annually from each company to his total annual income. The individual is required to report the dividend earned under the ‘Income from other sources’ head in the ITR form. Which ITR form to file for dividend income? The tax payer doesn’t need to submit any additional form to report his dividend income. He can disclose it in the same ITR in which he has reported his annual income. He can file following forms inter-alias to report his dividend income: No TDS on annual dividend income above ₹10,000 from one company: Budget 2025 Earlier, companies were required to levy TDS on dividend income paid to shareholders above ₹5,000 in one single year. But, the Union Finance Minister Nirmala Sitharaman proposed to hike this limit to ₹10,000 in the Budget 2025. Example: How much TDS will be levied on ₹11,000 dividend income? Additionally, he will have to pay income tax on ₹10,900 according to his applicable slab. He can add this amount to his total income and pay tax accordingly. As mentioned above, he will have to report this dividend income under the ‘Income from other sources’ in the ITR.Original Article