Section 194K TDS Calculator
Find the TDS your AMC deducts on mutual fund dividend / income distribution — 10% with PAN, 20% without — and the net amount credited to your bank.
How your TDS is worked out
Claim your 194K TDS credit — get your ITR filed by a CA
We reconcile your Form 26AS / AIS, claim every TDS credit and file your return accurately.
Disclaimer: Indicative estimate for resident individuals under Section 194K. Actual TDS depends on the fund house's records, PAN operability and any 15G/15H submitted. Rates per the Income-tax Act.
Section 194K — TDS on mutual fund dividend
Section 194K requires a mutual fund (AMC) to deduct TDS before paying dividend / income distribution (IDCW) to unit-holders — for both equity and debt schemes. TDS applies only once the total dividend for the year crosses ₹5,000; below that, nothing is deducted. Importantly, 194K covers income distributed by the fund, not the capital gains you make when you redeem or sell units.
TDS rate under Section 194K
Once your dividend for the year crosses ₹5,000, the AMC deducts TDS on the full dividend amount (not just the excess over ₹5,000). The rate depends only on whether your PAN is available.
| Dividend up to ₹5,000 / year | Nil |
| Dividend above ₹5,000 / year | 10% |
| Dividend up to ₹5,000 / year | Nil |
| Dividend above ₹5,000 / year | 20% |
Worked examples
Here is how the calculator arrives at the TDS and the net dividend credited to your bank in three common situations.
Key terms explained
Dividend vs capital gains
Section 194K applies only to dividend / income distributed by the fund. When you redeem or sell units, the profit is a capital gain taxed separately (STCG/LTCG) — no 194K TDS is deducted on those redemption proceeds.
Who deducts and when
The AMC / mutual fund deducts TDS before paying the dividend to you, and deposits it against your PAN. You see the credit in Form 26AS / AIS and adjust it against your final tax liability.
Taxable at your slab
The dividend is fully taxable in your hands at your slab rate. The 194K TDS (10%/20%) is only an advance — a credit you claim in your ITR, with any excess refunded or shortfall paid.
Form 15G / 15H
If your total income is below the taxable limit, you can submit Form 15G (or 15H for senior citizens) to the AMC so that no TDS is deducted under Section 194K on your dividend.
When is TDS deducted on mutual fund income?
Under section 194K, at 10% where income distributed by a mutual fund to a resident unit holder exceeds ₹10,000 in a financial year. The threshold was raised from ₹5,000 with effect from 1 April 2025.
Does 194K apply to capital gains on redemption?
No. The section expressly excludes income in the nature of capital gains. TDS applies only to the income distributed — what used to be called the dividend option and is now the income distribution cum capital withdrawal option.
What if I do not furnish a PAN?
TDS is deducted at 20% instead of 10%, and the credit cannot be matched to your PAN, so it is effectively lost until the record is corrected.
Can I avoid the deduction?
A resident whose total income is below the taxable limit can submit Form 15G, or Form 15H if a senior citizen, to the fund house or registrar. Otherwise the TDS is set off against your liability when you file.
How is the distribution taxed?
At your slab rate as income from other sources. The 10% TDS is only a part payment, so a taxpayer in a higher bracket will have further tax to pay on it.
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.