ITC Dividend for Pledged Shares at Zerodha

[sadasiva]

@Nitin @siva

I had 1000 shares of ITC pledged at Zerodha during the last few months.

Dividend for ITC was paid yesterday (8th Sep), and Investors who had not pledged ITC shares have already received it in their bank account.

Can you tell when can we (who had shares pledged at ex-date) receive the ITC dividends into our Zerodha Trading Ledger? Generally Zerodha credits the dividends by the next day. I checked the Account Statement today and could not see the dividend credit. Is there any delay?

[ShubhS9]

@Nakul can you.

[Stonecold]

Same question here, I too had some shares of ITC pledged with Zerodha…I even wrote to Zerodha Support about this but looks like most of the support executives do not know the technical know how and they just reply anything. Looks like TradingQnA is a better place to ask queries instead of their Support Portal.

[Prayag]

In a different thread, it is mentioned that the dividend is credited to the trading account once a week for all clients (generally on a Thursday).

@AkshayAtur

If you purchase one day before the Ex-dividend date which is called as Ex-cum date and sell it the next date, you are still eligible for the dividend. Since the stock is in Zerodha’s pool account, dividends on that stock get credited to Zerodha’s bank account. When the money gets credited to Zerodha’s bank account, we in turn credit it to the clients trading account with us. An entry similar to below is made on clients ledger with us.

We do this credit of dividend to trading account once a week for all our clients (typically on a Thursday). So if the dividend is passed out on Monday, clients who have pledged their stocks with us might get it only by next Thursday.

Is this procedure now changed? In the sense that the dividends are credited as and when Zerodha receives them (with a 1-2 days delay). Mainly asking because that thread is over 3 years old.

[Nakul]

The dividend, in this case, would be credited to the broker’s pool account as you had pledge the securities on the record date. The record date was 07th July, 2020 when we were still on the old system of pledge and the securities were being moved from your demat account to provide collateral margin. The dividend so received will be reconciled this week and credited to your trading account.

[sadasiva]

@Prayag

In a different thread, it is mentioned that the dividend is credited to the trading account once a week for all clients (generally on a Thursday).

Today was Thursday, and I could not see the dividend getting credited to my trading account. So I think the rules have since changed.

@Nakul

The dividend so received will be reconciled this week and credited to your trading account.

Thanks!

[Nakul]

You’ll get the credit of the dividend in your trading account by Monday.

[vijay22mishra]

I have received the dividend by ZERODHA . The only problem is

• I have 1000 share of ITC and Dividend was 10.15 Per share but I received only 9388.75 . Any explanation ?

[ShubhS9]

Deduction of TDS at 7.5%, explained here.

[sathishkumar]

@ShubhS9

1. if the dividend amount doesn’t exceed 5000 then full amount is credited right

2. If you have filed Form 15G or 15H with your company, TDS is deducted at a lower or NIL rate. - What is company referred to here

3. Can we claim TDS on dividend once we file ITR

[Pratist]

The procedure explained in the following post shall also apply in case of pledged shares:

Ajustment of TDS on LIQUID BEES DIVIDEND for units pledged

The AMC is going to deduct a 10% TDS and then payout the dividend to us since the units are lying in the broker’s account. The TDS will be filed against our PAN. We will inturn give credit of the dividend received in the form of units to our customers and then file the TDS credit against the customer’s PAN on a quarterly basis. TDS credit to the extent of 10% will reflect in the 26AS of the assessee to whom the liquid bees units are credited This is only till the new pledge process comes into …

[sadasiva]

@ShubhS9

Deduction of TDS at 7.5%, explained here .

According to that page:

If the TDS is deducted, the credit will be updated against your PAN.

So Zerodha will credit the 7.5% into our PAN as TDS. But will we also be issued the necessary TDS Certificate by Zerodha through e-mail?

Recently I got the following message from LT which paid dividend directly:

The certificate in respect of tax deducted at source, if any, shall be sent to you in due course to your registered email id, (post filing of 2nd quarter TDS Returns for the Financial Year 2020-21).

@Shubh59 Will Zerodha also provide us the same for the 7.5% TDS withheld?

[Laksh]

HI all,

Can I have format of such certificate please?

You can sent it to my email ID