Recently, the Income Tax Department has rolled out the Annual Information Statement. Basically, the Annual Information Statement (AIS) is a comprehensive view of taxpayer’s information. AIS includes all the additional information like interest; securities transactions; mutual fund transactions; dividend and foreign remittance information.
Notably, AIS furthermore provides a simplified Taxpayer Information Summary (TIS) which comprises of aggregate value for the taxpayer for the ease of Income Tax Return filing.
In the present article, we will deal with AIS Information Category – Dividend.
The key source of information for AIS category – Dividend-
On the basis of the following key information sources, the details under AIS category – Dividend is figured-out-
1. SFT-015-
A company paying the dividend, with respect to dividend distributed during the Financial Year, is required to report the same under ‘Statement of Financial Transactions (i.e., SFT). Notably, SFT Transaction Code for Dividend Income is allocated as ‘SFT-015’.
2. SFT-018-
The Registrar and the Share Transfer Agent reports dividend payable on the units of mutual fund in the Statement of Financial Transactions (SFT-018).
3. Form 26Q for TDS deducted under section 194-
The company paying/ distributing the dividend is liable to deduct TDS as per provisions of section 194 of the Income Tax Act, 1961. Such deducted TDS and dividend thereon are to be reflected by the company in TDS return to be filed in Form 26Q on a quarterly basis.
4. Form 26Q for TDS deducted under section 194K-
The Fund/unit distributing the income with respect to units of mutual funds is liable to deduct TDS as per provisions of section 194K of the Income Tax Act, 1961. Such tax deducted is to be reflected in the TDS return which is to be filed in Form 26Q on a quarterly basis.
AIS processing for information category – Dividend-
AIS processing, of the different information received from the sources defined above, will be carried out in the following manner-
AIS processing in case of reporting entity-
| Particulars | AIS Processing |
Higher of dividend income-
|
Amount reported will be retained |
Lower of dividend income-
|
The amount will be marked as ‘Information is duplicate/ included in other information’ |
Higher of dividend income-
|
Amount reported will be retained |
Lower of dividend income-
|
The amount will be marked as ‘Information is duplicate/ included in other information’ |
AIS processing of dividend income-
| Particulars | AIS processing |
| Dividend income | The listing will be done on the basis of the PAN of the reportee, information source and value. |
| Dividend income reported under SFT-018 | The listing will be done on the basis of the PAN of AMC; PAN of the reportee and value. |
Author Bio
What happens when the two figures viz. the amount shown in the TIS does not tally withe amount actually credited to the receiver’s account?? Further, items are splitted on different datesand some case the amount differs in a small way. At the end total div. received differs from the one in the TIS. How reconcile?