Add Dividend Income
Companies distribute dividends to their shareholders as a share of their profits. The amount received depends on the number of shares held by the investor. For tax purposes, dividend income is classified under the head "Income from Other Sources."
Common Questions About Dividend Income
Can I claim expenses related to dividend income?
Yes. If you’ve taken a loan to purchase shares and earned dividend income, you can claim the interest paid on that loan as a deduction. However, the deduction is capped at 20% of the dividend income received.
Do I need to report dividend income including TDS?
Yes. If your dividend income exceeds ₹5,000, the company is required to deduct 10% TDS before making the payment.
When filing your tax return, you must report the gross dividend income (i.e., before TDS deduction). You can then claim credit for the TDS under the applicable section.
Steps to add interest income
1. Autofill from Income Tax Department
- Navigate to File > Incomes > Other Incomes. Click Connect to import data from ITD
- Connect to ITD via Aadhaar OTP or credentials
Your dividend income will be auto-filled. You can review it and proceed further.
2. Add Manually
- Navigate to File > Incomes > Other Incomes, select Dividend Income
- Enter the dividend income amount and, if applicable, claim any interest paid on loans used to buy stocks
Steps to add interest income
1. Autofill from Income Tax Department
- Navigate to File > Incomes > Other Incomes. Click Connect to import data from ITD
- Connect to ITD via Aadhaar OTP or credentials
Your dividend income will be auto-filled. You can review it and proceed further.
2. Add Manually
- Navigate to File > Incomes > Other Incomes, select Dividend Income
- Enter the dividend income amount and, if applicable, claim any interest paid on loans used to buy stocks
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