Taxation rules on Dividend Income

There are three components in the payout from InvITs-- Interest, Taxable Dividend and Non-Taxable Dividend. So, can we disclose only {Interest} + {Taxable Dividend} under the Income from Other Sources head in the ITR by ignoring Non-Taxable dividend amount?

There are have been some statutory changes wef April 2020, I suggest you to read it.

If you are deriving any income which is exempt from tax, its better if you disclose it under exempt Income category. Previously Section 10(23FD) was used for declaring exempted dividend from Business Trusts. After making sure that the dividend you are receiving is exempt from tax, you can declare the same under exempt income with the above mentioned section.

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Hi @GoutamHebbar bro, I couldn’t find any Exempt Income column in ‘Income From Other Sources’ section in the ITR-2. So, I am not sure where to mention the Non-taxable Dividend Income so that it will be exempted from my income. If you have any further suggestions, please let me know.

I see only these deductions in ‘Income From Other Sources’ section but I think none of them are applicable to mention the ‘Non-taxable Dividend Income’

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Exempt Income is not under the Head Income from Other Sources.

There is separate head for Exempt Incomes.

@GoutamHebbar bro, got it! That particular shcedule was not in selection for my profile, by default. I went to the complete list of schedules and then explicitly selected it.

You really helped me by clarifying my doubts(might be basic but every minute detail matters to me) as I am filing my IT retruns. My sincere thanks to you!

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Can v show this in ITR 1?

Yes. Exempt Income can be declared in form ITR 1.

Here the question was about dividends from InvIT.
Dividends from Listed companies are no more exempt and they attract slabwise tax rates, and needs to be reported under Income from Other Sources.