n NISM Certifications
X NISM Series X
Medium

When is the dividend declared at an AGM taxed in the shareholder's hands?

Practice question from NISM Series XB- Investment Adviser (Level 2) Mock Test 4 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. In the year of declaration

    Correct answer

  2. B

    In the year of receipt

  3. C

    In the year of declaration or receipt, whichever is earlier

  4. D

    As per the shareholder’s method of accounting

Why this is the answer

Dividends declared in AGM are deemed income of the year they are declared, regardless of when received, and taxed accordingly.

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