Once TDS will be deducted on the dividend income, the same will be deposited by filing TDS Return Form 26Q by the deductor. And you will be able to see the TDS Deducted in your Form 26AS. And as per the general practice TDS Certificate for the same shall be issued by the deductor.
There is no insertion of a new section for TDS on the interest income from bonds and debentures in Budget 2020. However, as per section 193 TDS is applicable on interest from bonds and debentures @10% if the interest income is more than INR. 5,000.
Section 80-IAC of the Income Tax Act provides a deduction for 100% of the income of an eligible startup for 3 years out of 7 years from the year of its incorporation provided their turnover is up to INR. 25 Cr.
Budget 2020 increased the period to 10 years from 7 years and increased the turnover limit to INR. 100 Cr. from INR. 25 Cr.
The words used are eligible startups hence if the startup fulfils all the conditions mentioned in section 80-IAC, it is eligible to claim deduction benefit.
As per the clarification: A taxpayer having no business income has an option to choose between current and new tax rates every year. But the taxpayers who have business income can only exercise his/her option to switch from New Tax Regime to Current Tax Regime one time. Once an option is exercised it will be locked. And the same needs to be followed by the taxpayer in subsequent years.
Which means:
You opt for the Current Tax Regime during FY 2020-21: Then next year you can either go for the Current or the New Tax Regime. The option to switch from the Current to the New Tax Regime will stay with you.
You opt for the New Tax Regime during FY 2020-21: Then next year you can either go for the New or the Current Tax Regime. But once you switch from a New Regime to Current Regime it will be locked. And you will have to follow the Current Regime in Subsequent Years.
Due to the removal of DDT, dividend income will be taxable at slab rate to NRIs. TDS will be applicable u/s 195 of the Income Tax Act. And the same will be reflected in Form 26AS of the NRI. If that is the only income of NRI then they can file their ITR and claim refund of TDS deducted on dividend income.
ETFs like Liquid Bees earn a daily dividend on the invested amount. These units are reflected in the Demat account. As per Section 194K, TDS should be deducted at the time of credit of income to the payeeâs account or at the time of payment of dividend, whichever is earlier.
In our opinion, TDS should be deducted when the dividend in the form of units are credited to your account. However, there is no clarification issued on the same by the income tax department.
TDS Certificate is issued only once the TDS Return is filed by the deductor. TDS Return is filed at the end of each quarter.
Once the section becomes applicable from 1st April, 2020, we would get a better clarity based on how the AMCs implement the provisions of Section 194K on distributing dividends on mutual funds.
Hey @Quicko
Iâll be graduated last year from college. My parents paid for my fees. They used to transfer the money in my account, which I used to pay my college tuition with. The total amount would have around 10L. I have some trading profit (fno) along with salary >20Lakh in this year.
Assume, If I transfer that money back to their account(may or may not with some interest). So, can I show that 10 Lakh as Loan and claim as a one-time deduction while paying tax?