The source of information regarding Dividends paid by all types of companies, dividends paid by the unit of mutual funds, and income received in respect of units of mutual funds reported by the issuing company, transfer agents, and mutual fund entity, collected by income tax department are discussed hereunder.
The key information sources under this information category are as under:
S.No | Information | Description |
1 | Dividend income (SFT-015) | Dividend paid/declared by all companies (reporting entity) is reported under the Statement of Financial Transactions (SFT). |
2 | Dividend received (Section194) | A company paying/distributing dividends is liable to deduct TDS from the amount paid subject to the threshold applicable in the act and report through form 26Q (quarterly statement). This information is provided by the deductor to the deductee (taxpayer) in Form 16A. |
3 | Dividend on Units of Mutual Fund (SFT-018) | The Registrar and Share Transfer Agent report dividends payable on units of mutual funds in the Statement of Financial Transaction. |
4 | Income received in respect of units of Mutual Funds (Section 194K) | Fund/Unit distributing Income in respect of units of Mutual Funds is liable to deduct TDS from the amount paid subject to the threshold applicable in the act and report through form 26Q (quarterly statement). This information is provided by the deductor to the deductee (taxpayer) in Form 16A |
The approach for AIS processing and information handling is as under:
Dividend Income will be listed on the basis of PAN of the reported person, Information Source, and value. For dividends reported under SFT-018, the same shall be listed on the basis of PAN of AMC, PAN of reported person, and value.
For each reporting entity, the higher dividend income reported under SFT-015 and amount reported by deductor u/s194 will be retained and the information source with the lower value will be marked as “Information is a duplicate / included in other information”. Similarly, in the case of dividend reported under SFT-018 and u/s 194K, a higher value shall be retained with a lower value will be marked as “Information is a duplicate/included in other information”.
The AIS information level feedback can be used for providing the following inputs:
Information is correct
Income is not taxable
Information is not fully correct: This functionality can be used to modify key attributes Information values etc.
Information relates to other PAN/Year
Information is duplicate / included in other information
Information is denied
The feedback provided by taxpayers will be shown separately in AIS and will update the value in Taxpayer Information Summary (TIS).
The aggregate value of the dividend after deduplication shall be populated in the dividend field in Schedule OS of ITR.
All deductions and depreciation u/s 57 from other source income to be claimed in the return.
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