Dividend in pnl statement


#1

I request someone to post if the dividend received is included in the profit in the PnL statement. I could not see that in my pnl statement including the tax pnl.


#2

For accounting purposes dividend will be included in your statement of P&L under the head of Other Incomes. However, dividend income received will not be taxed in your hands subject to some conditions. Refer to the below quoted extract of the IT Act for reference.

(34) any income by way of dividends referred to in section 115-O :

75[Provided that nothing in this clause shall apply to any income by way of dividend chargeable to tax in accordance with the provisions of section 115BBDA;]

(34A) any income arising to an assessee, being a shareholder, on account of buy back of shares (not being listed on a recognised stock exchange) by the company as referred to in section 115QA;

(35) any income by way of,—

(a) income received in respect of the units of a Mutual Fund specified under clause (23D); or

(b) income received in respect of units from the Administrator of the specified undertaking; or

© income received in respect of units from the specified company:

Provided that this clause shall not apply to any income arising from transfer of units of the Administrator of the specified undertaking or of the specified company or of a mutual fund, as the case may be.

Explanation.—For the purposes of this clause,—

(a) “Administrator” means the Administrator as referred to in clause (a) of section 2 of the Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002 (58 of 2002);

(b) “specified company” means a company as referred to in clause (h) of section 2 of the Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002 (58 of 2002);

(35A) any income by way of distributed income referred to in section 115TA received from a securitisation trust by any person being an investor of the said trust :

76[Provided that nothing contained in this clause shall apply to any income by way of distributed income referred to in the said section, received on or after the 1st day of June, 2016.]

Explanation.—For the purposes of this clause, the expressions “investor” and “securitisation trust” shall have the meanings respectively assigned to them in the Explanation below 77[section 115TCA];


#3

Thank you very much for the detailed information. I am not seeing it in the pnl statements shown on zerodha console. I think I will need to check if I am eligible for exemption and then report it appropriately.


#4

@lakshmihv Currently the dividend details are available under the other credits and debits section of the P&L report only for the clients who have pledged their holding with us.
We are working on providing a dividend report as part of the P&L statement for all clients soon. However, this might take some time as the dividend credit doesn’t happen through Zerodha (except where the shares are pledged) but gets credited directly to the bank account linked to your demat. To report the dividend income for taxation purpose you may refer your bank account statement.