Dividend on Liquidbees - As per Section 194K, TDS should be deducted on the dividend at the time of credit to the payee’s account or at the time of payment by any mode. Thus, TDS must be deducted even if the dividend is paid in the form of units and not cash. TDS at 10% (7.5% for FY 20-21) should be deducted if the dividend exceeds INR 5,000. Unit holder can provide Form 15G or Form 15H for deduction of TDS at lower rate.
For any further queries, write to us on [email protected]