Dividend Tax Calculator
Since FY 2020-21 dividends are taxed in your hands at your slab rate. See your tax, the TDS u/s 194 already deducted, and your balance tax — live.
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Dividend tax breakdown
Get your dividend income reported & ITR filed by a CA
We reconcile your TDS (Form 26AS / AIS), claim credit and file your return accurately.
Disclaimer: Indicative estimate for individual residents. Actual tax depends on your total income, other deductions and applicable surcharge. TDS & rates per the Income-tax Act (Sec 194).
How dividends are taxed after DDT was abolished
Until FY 2019-20 companies paid a Dividend Distribution Tax (DDT) and dividends were tax-free in your hands. From FY 2020-21 the DDT was abolished — now dividends are added to your total income and taxed at your own slab rate. To collect tax up front, the company deducts TDS u/s 194 @ 10% before paying, if your total dividend for the year crosses ₹5,000.
Worked examples
The TDS is not an extra cost — it is an advance payment of your own tax that shows in Form 26AS / AIS, so you only pay the balance when you file. Here is how a ₹1,00,000 dividend plays out at different slab rates (with PAN, so TDS is 10%):
Key points explained
Taxed at your slab
Dividend is clubbed with your other income and taxed at your highest slab rate plus 4% cess. A person with no other income and dividend below the basic exemption may pay no tax at all.
TDS u/s 194
The company / RTA deducts 10% TDS before paying if your total dividend for the year exceeds ₹5,000. No PAN on record means TDS at 20% u/s 206AA.
Claim the TDS credit
TDS deducted appears in your Form 26AS / AIS. When you file your ITR you get full credit — so you either pay only the balance tax or receive a refund if TDS exceeds your liability.
Form 15G / 15H
If your total income is below the taxable limit, you can submit Form 15G (or 15H for seniors) to the company so no TDS is deducted on your dividend in the first place.
Questions people ask
Short answers on Dividend Tax Calculator. Tap a question to open it.
01How is dividend income taxed in India?
Since April 2020 dividends are taxable in the shareholder's hands at their applicable slab rate. There is no dividend distribution tax and no separate concessional rate for a resident individual.
02Is TDS deducted on dividends?
Yes. A company deducts TDS under section 194 at 10% where dividend paid to a resident individual exceeds ₹10,000 in a financial year. The rate is 20% if PAN is not furnished, and 20% plus surcharge and cess under section 195 for non-residents, subject to treaty relief.
03Can I claim any expense against dividend income?
Only interest expenditure incurred to earn the dividend, and that is capped at 20% of the dividend income. No other expense — demat charges, advisory fees or brokerage — is deductible.
04Do I have to pay advance tax on dividends?
Yes, but only from the quarter in which the dividend is actually received. Section 234C relaxes the interest computation for dividend income precisely because it cannot be estimated in advance.
05Can I avoid TDS on dividend?
A resident individual whose total income is below the taxable limit can submit Form 15G, or Form 15H if a senior citizen, to the company or registrar. Otherwise the TDS is credited against your final liability when you file.
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Disclaimer: This tool gives indicative results for general guidance only and is not professional advice. Please verify with a qualified CA before acting on the numbers.