Dividend Income Tax Calculator

⚡ In shortSince April 2020, dividends are taxable in the hands of the shareholder rather than the company — so the dividend you receive from shares or mutual funds is added to your total income and taxed at your applicable slab rate. There is no separate flat rate on dividends for a resident individual — they are simply part of your income and taxed at your slab. Separately, when the total dividend a company pays you in a financial year exceeds ₹10,000 (raised from ₹5,000 in Budget 2025, from FY 2025-26), it deducts 10% TDS under section 194 (or 194K for mutual-fund units) and deposits it against your PAN; you adjust that TDS against your final tax when you file your return. If your total income is below the taxable limit, you can submit Form 15G/15H to avoid the TDS. This calculator shows the slab-rate tax on the dividend, the 10% TDS the payer will withhold, and the net amount in hand.

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How it is calculated

There is no separate flat rate on dividends for a resident individual — they are simply part of your income and taxed at your slab. Separately, when the total dividend a company pays you in a financial year exceeds ₹10,000 (raised from ₹5,000 in Budget 2025, from FY 2025-26), it deducts 10% TDS under section 194 (or 194K for mutual-fund units) and deposits it against your PAN; you adjust that TDS against your final tax when you file your return. If your total income is below the taxable limit, you can submit Form 15G/15H to avoid the TDS. This calculator shows the slab-rate tax on the dividend, the 10% TDS the payer will withhold, and the net amount in hand.

Frequently asked questions

At what rate is dividend taxed in India?

At your normal income-tax slab rate — dividends are added to your total income. There is no special concessional rate for resident individuals.

When is TDS deducted on dividends?

When the total dividend paid to you by a company or mutual fund in a financial year exceeds ₹10,000 (the FY 2025-26 threshold, raised from ₹5,000), 10% TDS is deducted under section 194 / 194K. You can claim it back when filing your ITR.

How do I avoid TDS on dividends?

If your total income is below the basic exemption limit, submit Form 15G (or 15H for senior citizens) to the company or registrar so no TDS is deducted.

Are mutual-fund dividends taxed the same way?

Yes. Dividend (IDCW) from mutual funds is taxed at your slab rate, with 10% TDS under section 194K above ₹5,000.

Related reading

India Law Simplified is an AI-assisted tool, not a substitute for a licensed CA or advocate. Tax rules and limits change with each Finance Act — verify before relying on any figure.