Dividend income taxation

Taxation
1

Hi,
I have two questions.

  1. Do we need to pay additional tax on dividends as TDS is already deducted at the time of pay-out,
  2. How do we report dividend income in QUICKO. Are the details directly imported from ZERODHA? If not how do we do it manually?
    Thanks
2

@Quicko

3

Dividends are taxed at slab rate. If your slab rate is more than the percentage at which TDS is cut, then you have to pay the extra yourself. And you have to pay this within the advance tax deadlines, or else you will end up paying interest (at 1% per month, if I remember correctly).

4

Hi @bitte97 @a13989

  1. Dividend incomes will be taxed as per your slab rate. TDS is deducted on dividend incomes at a flat rate of generally 10%.
  2. You will have to report dividends income on the Quicko platform using your AIS, as all dividends are not reported in Zerodha reports. You can also refer to your Bank Account Statement and enter your dividend incomes on your platform.

Let us know if you have any further queries. Would be happy to help. :blush:

5

Hi
Thanks for the reply.

  1. AIS shows details of FY 2020-21 only. What about 21-22? Aren’t we supposed to pay the final installment of advance tax for the year by 15th March?
  2. On the QUICKO page, are we supposed to report the dividends received including the TDS? How does QUICKO calculate the TDS already deducted?
    Thanks
6

Dividend income from REITs is taxed a bit better. If you want to earn dividend income then they are a good bet.