Is there anything like 15H for dividend TDS exemption?

Taxation
1

As per new budget there will be 10% TDS if div. if more than 5k but for those whose total income is less than threshold …can they submit any thing similar to 15H or 15G to get exemption from TDS?

So I know a senior citizen whose income is less than 3 lac so files for tds exemption every year with her bank.

Again it says more than 5000 INR …that limit applies to individual company or MF or their total combined …for example if she gets dividend from NHPC worth 3000 Rs. and dividend from a mutual fund worth 2500 RS. …which is 5500 Rs. …so is she above threshold limit hence both NHPC and MF will deduct 10%? (I think it applies per company but just making sure)

2

@Quicko Can you.

3

@curiousvi

  1. TDS will be deducted on dividend income if the total dividend is more than Rs. 5,000 from all the entities during the financial year. It will be deducted @ 10%.
  2. Yes, a resident individual can submit Form 15G / 15H for nil deduction of TDS on dividend income provided their total estimated tax liability should be Nil.

So in your case yes you can submit Form 15H to both the payers since the estimated income is less than the basic exemption limit.

Hope this helps. Feel free to DM us at [email protected] in case of any other query. :slightly_smiling_face:

4

I think above clarification is for FY 20-21?
@Quicko

5

@sinha

Yes, the above clarification is for dividend income earned from FY 2020-21 onwards. Since up until FY 2019-20 DDT (Dividend Distrubution Tax) was applicable. And no TDS was deducted on dividend income.

6

Companies planning dividends have now started sending mails regarding TDS on Dividend and 15H/15G.

How does 15H/15G submission work on Dividends from Multiple Stocks held in Zerodha during entire FY20-21 year ?

In such case does an Individual seeking TDS exemption has to :

  • Submit 15G/15H for every Stock held before each dividend declared ?
  • repeat the procedure for all stocks in all dividend cycles during the FY year ?
  • Is there online mechanism for submission or offline mechanism ?

Alternately, is there any procedure to submit 15G/15H online via Zerodha once for all stocks for the FY.
(Such online procedure is available in Banks for all FDs held).

Pl. clarify.

7

@Quicko, please check

8

Hi,
Following are the ways you can submit Form 15G/15H:

  1. Submit Form 15G/15H at the beginning of the Financial Year
  2. Form 15G/15H needs to be submitted to the payer who deducts TDS (further clarification is awaited from the ITD)
  3. It can usually be submitted online, however the mode of submission may vary based on the payer

If you have received an email for deduction of TDS on dividend - Here is a blog for TDS on Dividend paid in FY 2020-21