📢 Taxation of Foreign Dividend Income in India – What You Need to Know by Return Filings Via Flickr: Are you earning dividends from foreign stocks like Apple, Tesla, or Amazon?
📈Here’s how that income is taxed in India and what you must do to stay compliant:
🔹 1. Foreign Dividends Are Taxable in India All dividends from foreign companies are taxed under "Income from Other Sources" in your ITR. You pay tax as per your applicable slab rate — no fixed flat rate.
🔹 2. TDS May Be Deducted by Foreign Countries Many foreign jurisdictions deduct TDS before paying you. The rate depends on the Double Taxation Avoidance Agreement (DTAA) between India and that country.
🔹 3. Mandatory Reporting in ITR You must report foreign dividends under Schedule Foreign Assets in your Income Tax Return. 🚨 Not reporting? It may lead to penalties under the Black Money Act.
🔹 4. Claiming Foreign Tax Credit (FTC) To avoid paying tax twice (once abroad, once in India), file Form 67 to claim Foreign Tax Credit. Ensure proper documentation and proof of taxes paid overseas.
🔹 5. Exchange Rate to Be Used Convert foreign dividend income into INR using the RBI reference rate as on the last day of the preceding month. Maintain records of: Dividend amount, Date received, Exchange rate applied
📌 See the original infographic on Flickr: 🔗 https://www.flickr.com/photos/203245362@N06/54694324411/in/dateposted-public
📲 Also shared on X (formerly Twitter): 🔗 https://x.com/ReturnFilings1/status/1942086004451483707/photo/1