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Dividend and TDS reconciliation
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Facts
Companies deduct TDS on dividends above the threshold and report them, so they show in AIS and 26AS. Dividends are fully taxable at slab rates.
Provisions and law
- Sec 194 (now Sec 393)TDS on dividends
- Sec 56 (now Sec 92)Dividend income taxed under other sources
Analysis
Download AIS as CSV and sort by dividend. Total the gross dividends, say ₹38,000, and TDS, say ₹2,500 from companies above the threshold. Report gross dividends, not the amount received after TDS, and claim the TDS. Under the old regime, interest on money borrowed to buy shares is deductible only up to 20% of dividend.
Conclusion
- Download AIS as CSV and filter dividends
- Total gross dividends and TDS
- Report gross dividends under other sources
- Claim TDS from 26AS
A Savvy can do this for you
Pre-filing reconciliation of AIS, TIS, 26AS and Form 16
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