Dividend Tax Calculator
Since April 2020, dividends are taxed in your hands at your income-tax slab rate — the old dividend distribution tax is gone. Companies also deduct TDS at 10% under Section 194 once they pay you more than ₹10,000 in a financial year (threshold raised in Budget 2025), which you claim as credit in your return.
Enter your dividend income, your slab rate and any TDS already deducted; the calculator returns the tax, cess and net balance payable (or refundable).
How it works
- Tax = dividend × your marginal slab rate; health & education cess of 4% applies on the tax.
- TDS deducted by companies (visible in your AIS/Form 26AS) is a credit against this liability, not an extra tax.
- Balance payable = tax + cess − TDS credit.
Frequently asked questions
At what rate is dividend income taxed?
At your marginal slab rate under whichever regime you file — dividends are simply added to 'income from other sources'. A 30%-slab investor keeps ₹70 of every ₹100 declared (less cess); there is no special lower rate for dividends in India, unlike some other markets.
When is TDS deducted on dividends?
At 10% under Section 194 when the total a company (or fund) pays you in the financial year exceeds ₹10,000 — per payer, not overall. Without a PAN on record it jumps to 20%. Small holdings across many companies often see no TDS at all, but the income remains fully taxable.
Can I avoid TDS if my income is below taxable limits?
Yes — submit Form 15G (below 60) or 15H (60+) to the registrar/company declaring your estimated income is below the taxable limit. This only stops the deduction; if tax is actually due at year end, you still pay it via return.
Do I need to pay advance tax on dividends?
If your total tax due (after TDS) exceeds ₹10,000 for the year, yes. Relief: interest under 234C on dividend income is computed only from the instalment after you actually receive it, since dividends can't be foreseen. One deduction exists: interest paid to earn the dividend, capped at 20% of the dividend (Section 57).
Related tools
Stop calculating. Start getting alerted.
MarketPing watches every NSE & BSE filing in real time — results, dividends, buybacks, order wins — AI-summarised with likely price impact and delivered to your WhatsApp.
This tool is an educational estimate, not investment or tax advice. Rates and rules change — verify current figures and consult a professional before acting.