If the Liquidbees Dividend units are less than 5k, there is no TDS but once Dividend units exceed 5k, would TDS be applicable to units more than 5k only or also applicable to the units which are already paid monthly in the past in that FY?
I have a Dividend reinvestment MF and also Dividends are paid by individual companies also. So how does the “TDS applicable when Dividend exceeds 5k” rule apply here. Because individually, the Dividend may not exceed 5k. But when you add all of them the total Dividend earned certainly exceeds 5k.
I have a Dividend reinvestment MF and also Dividends are paid by individual companies also. So how does the “TDS applicable when Dividend exceeds 5k” rule apply here. Because individually, the Dividend may not exceed 5k. But when you add all of them the total Dividend earned certainly exceeds 5k.
The condition to deduct TDS is for each Company. If a Company pays dividend to a shareholder of an amount exceeding Rs.5000 during the financial year, it is required to deduct TDS at 10%. A Company can issue dividends to multiple shareholders and should check the limit of Rs.5000 for dividend paid to each shareholder for each financial year. Similarly, a shareholder can received dividends from multiple companies. While the entire amount of dividend is taxable, TDS would be deducted on dividend which is in excess of Rs.5000.
So let say I receive Rs 4000 dividend from Company A and Rs 2000 dividend from Company B, though the respective dividends are < Rs 5000, but the total sum is Rs 6000 > Rs 5000. So while individually, the companies won’t deduct TDS, but what do we tax payers need to do in such case while filing ITR?
In that case, neither of the Company would deduct TDS on the dividend paid since it is less than Rs.5000. On the other hand, you (investor) should report total dividend of Rs.6000 as a taxable income in the ITR.
IMP: This provision is applicable from FY 2020-21 since the amendment was introduced in Budget 2020. Upto FY 2019-20, the company was liable to pay DDT (Dividend Distribution Tax) but it was not required to deduct TDS on dividend paid. The dividend income was exempt in the hands of the shareholder.
You will be the owner of dividends but broker will receive it and he will transfer to you.
Effective June 01, 2020, this process is undergoing a change. The shares will no longer move out of the investor’s demat. Instead, a pledge will be marked in favor of the trading member. Here’s the SEBI circular explaining the change.
In that case you will receive dividends directly in your account, broker is not involved.
Siva,
1.) If I have pledged Liquid Bees, then can I sell them in the market without unpledging?
2.) How much time it will require for the amount to be credited in my trading account if consider unpledging also and then selling ?
Can anybody teach me about Liquidbees?? How they work any why are they always INR 1000? How to buy them? I mean when we buy liquid fund units… the NAV keeps including the interest daily… but LiquidBess doesnt seems to fluctuate. How If me or someone else invest in these… will get the interest? will the interest keep crediting to our trading account or the value of LiquidBess will start increasing… after its in our demat??
and If after having it in my demat account for 3 4 days, will I be able to sell it easily??
Please can anybody share some knowledge or their experience with liquidbees?
How to buy them? I mean when we buy liquid fund units… the NAV keeps including the interest daily… but LiquidBess doesnt seems to fluctuate. How If me or someone else invest in these… will get the interest? will the interest keep crediting to our trading account or the value of LiquidBess will start increasing… after its in our demat??