about tds on dividends

1. As soon as the dividend crosses 5000, TDS is deducted at 10% if PAN is available or at 20% if PAN is not available.
2. Non-PAN submitted users also get the benefit of no deduction of TDS up to 5000.
3. The credit of TDS is only given when you submit the return. The person deducting TDS has to submit that amount to the government, and it is not up to him/her to give you credit afterwards.

but as its not possible to trade/invest in mfs without adhaar linked pan anyway dont know why u even asked this

The tax deduction is at 10% on the dividends , only if total dividend in a financial year exceeds INR 5,000. Sec 194K of IT Act is applicable from 1st April 2020 i.e. FY 2020-21 onwards. TDS is at 20% in case the payee doesn’t furnish their PAN.

Jarvis.-. wrote:

1. As soon as the dividend crosses 5000, TDS is deducted at 10% if PAN is available or at 20% if PAN is not available.
2. Non-PAN submitted users also get the benefit of no deduction of TDS up to 5000.
3. The credit of TDS is only given when you submit the return. The person deducting TDS has to submit that amount to the government, and it is not up to him/her to give you credit afterwards.

but as its not possible to trade/invest in mfs without adhaar linked pan anyway dont know why u even asked this

Watcher wrote:

The tax deduction is at 10% on the dividends , only if total dividend in a financial year exceeds INR 5,000. Sec 194K of IT Act is applicable from 1st April 2020 i.e. FY 2020-21 onwards. TDS is at 20% in case the payee doesn’t furnish their PAN.

Jarvis.-. wrote:

1. As soon as the dividend crosses 5000, TDS is deducted at 10% if PAN is available or at 20% if PAN is not available.
2. Non-PAN submitted users also get the benefit of no deduction of TDS up to 5000.
3. The credit of TDS is only given when you submit the return. The person deducting TDS has to submit that amount to the government, and it is not up to him/her to give you credit afterwards.

but as its not possible to trade/invest in mfs without adhaar linked pan anyway dont know why u even asked this

Actually I think @kukdookoo is asking this because he or his known may have any old mutual fund before 2011 I think. PAN was not mandatory for mutual fund investments then. So 20% TDS deducted from MF dividends for not having PAN. Hope this clears everything.

kukdookoo wrote:
https://www.desidime.com/discussions/about-tds-...

TDS is at 20% in case the payee doesn’t furnish their PAN.
irrespective of dividend amount in a year?

 on Exceeding amount 5k as dividend in a financial year

kukdookoo wrote:
actually this fund belongs to a senior citizen started 18 years ago. they have deducted 20% tds on dividend of 2000. and sent letter to do kyc. now after completing kyc the tds did not show in 26as.
when was this notification passed of 10% and 20% tds?

Bro wait. It will show when you file itr next year. 

kukdookoo wrote:
actually this fund belongs to a senior citizen started 18 years ago. they have deducted 20% tds on dividend of 2000. and sent letter to do kyc. now after completing kyc the tds did not show in 26as.
when was this notification passed of 10% and 20% tds?

The company won't update the TDS deducted amount under your PAN if update the PAN card details later. 

Better to skip this.

• Also, I am not sure, If we can file the return for tds refund if it is not reflected in AIS. Can someone confirm this?
  
  • If it is possible, then you can try this method.

Watcher wrote:

 on Exceeding amount 5k as dividend in a financial year

kukdookoo wrote:
But yaar they deducted 20% tds for dividend amount of 2k. Is there any notification which clarifies this? + @Jarvis.-.  @flash007

Which company? and have you checked the total dividend amount for the financial year?

the rule is:

• if the pan is present:
  • dividend amount > 5k => 10% tax
  • dividend amount < 5k => no tax
• if pan is not present => 20% tax, i.e. irrespective of the dividend amount

https://taxguru.in/income-tax/section-194-tds-p...

If PAN is not present, then 20% TDS, Any Amount.

It became effective from the 1st of April 2020 as per the amendment in the Income Tax Act, 1961 by the Finance Act, 2020.

and we can't get a refund of this amount. (20% TDS). Better, to get the PAN updated ASAP wherever it's missing. (and move all the MFs to the Demat account if possible.)

flash007 wrote:

Which company? and have you checked the total dividend amount for the financial year?

the rule is:

• if the pan is present:
  • dividend amount > 5k => 10% tax
  • dividend amount < 5k => no tax
• if pan is not present => 20% tax, i.e. irrespective of the dividend amount

https://taxguru.in/income-tax/section-194-tds-p...

Rajkotian wrote:

If PAN is not present, then 20% TDS, Any Amount.

It became effective from the 1st of April 2020 as per the amendment in the Income Tax Act, 1961 by the Finance Act, 2020.

and we can't get a refund of this amount. (20% TDS). Better, to get the PAN updated ASAP wherever it's missing. (and move all the MFs to the Demat account if possible.)

kukdookoo wrote:
Bro any link of notification which says 20% tds irrespective of amount if no kyc is there? + @flash007

kukdookoo wrote:
Bro any link of notification which says 20% tds irrespective of amount if no kyc is there? + @flash007

Leave the past, nothing much can be done about that. 

You can add pancard in MF online as well, if the pancard name matches with the mutual fund holder's name.

kukdookoo wrote:
Bro any link of notification which says 20% tds irrespective of amount if no kyc is there? + @flash007

Yes 20% TDS if no PAN is presented , irrespective of dividend amount. 

Jarvis.-. wrote:

1. As soon as the dividend crosses 5000, TDS is deducted at 10% if PAN is available or at 20% if PAN is not available.
2. Non-PAN submitted users also get the benefit of no deduction of TDS up to 5000.
3. The credit of TDS is only given when you submit the return. The person deducting TDS has to submit that amount to the government, and it is not up to him/her to give you credit afterwards.

but as its not possible to trade/invest in mfs without adhaar linked pan anyway dont know why u even asked this

mieruko wrote:

the TDS can later be claimed during ITR filing if total income falls below the minimum tax slab, right?

Jarvis.-. wrote:
As long as tax payable is less than tds u can get refund

Jarvis.-. wrote:
As long as tax payable is less than tds u can get refund

They are asking about the 20% TDS deducted for not submitting the PAN. I don't think you can get the credit for the same unless the deductor revises their TDS return.

Jarvis.-. wrote:
As long as tax payable is less than tds u can get refund

mieruko wrote:

the TDS can later be claimed during ITR filing if total income falls below the minimum tax slab, right?

can u explain how?

kukdookoo wrote:
can u explain how?

Jarvis.-. wrote:
If tax payable is 1k and tds is 2k u'll get 1k refund

mieruko wrote:

the TDS can later be claimed during ITR filing if total income falls below the minimum tax slab, right?

if TDS is without PAN, it cannot be claimed. if TDS is against PAN, it can be claimed. PAN needs to be declared before credit of amount on which TDS is made.