Dividends - FY20 or FY21?

Ramco declared dividend with effective date as 11 Mar 2020.

I received the cheque in Apr '20.

Is it acceptable to make entry in last financial year (FY20) as in reality it belongs to last year.

@Quicko is best suited to answer this.

Btw, on a related topic Quicko put this up, maybe you’d interested to read - https://blog.quicko.com/tds-on-dividend-paid-in-fy-2020-21

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Yes. The record date is the date to determine list of shareholders eligible to receive the dividend. The payment date is the date on which the actual payment of the dividend occurs. Such dates can fall in different financial years.
If the dividend is paid on or after 1st April 2020, Company would deduct TDS at 7.5% if the dividend exceeds INR 5,000.

For any further queries, write to us on [email protected]

how should we ask the interest/dividend certificate and the TDS certificate from the company ? is it required ?

Once the Company deducts TDS on dividend, it deposits it with the government. The Company would file a TDS Return at the end of each quarter. Once it files TDS Return, it can provide TDS Certificate in Form 16A have received an email for deduction of TDS on dividend. It mentions that I should submit Form 15G if I want TDS to be deducted at lower rate. What happens if I dont submit Form 15G?).

Thus, at the end of quarter, you can ask for Form 16A from the Company. The details of TDS are also reflected in your Form 26AS available in your account on the income tax e-filing website. If the details are reflected in Form 26AS, you may not ask for Form 16A.

For any further queries, write to us on [email protected]

I prefer to make entry in whichever FY the credit of any sum is actually received. It makes reconciling books later simpler.

I agree. However there is a tax component on Dividend from FY 21 onwards plus there is a moratorium until 30th June due to lock-down.

Any money saved (legally) is money earned.