Dividend Income Tax Calculator
Enter your dividend income and total income to see TDS deducted, slab tax due, and whether you owe more or get a refund.
Runs entirely in your browser — your numbers never leave this page.
How it works
Since 2020, dividends are taxed in your hands at slab rates. Two moving parts:
- TDS at 10% (section 194): the company deducts it only if your FY dividend exceeds ₹10,000 (raised from ₹5,000 from 1 Apr 2025). Below that, nothing is deducted.
- Slab tax: the full dividend joins your total income and is taxed at your marginal rate. In a higher slab you owe more than the TDS; in a lower slab you claim a refund.
- Interest deduction: interest on money borrowed to buy the dividend-paying shares is deductible, capped at 20% of the dividend income. No other expense deduction is allowed.
- Mutual fund dividends face the same treatment — 10% TDS above ₹10,000 under section 194K.
- No PAN, higher TDS: without a valid PAN the company deducts 20% instead of 10%.
Frequently asked questions
How are dividends taxed in India now?
At your income-tax slab rate. The company deducts 10% TDS only as an advance — your final liability depends on your total income and regime.
What is the TDS threshold for dividends?
₹10,000 per financial year per company (from FY 2025-26). Below that, no TDS is deducted under section 194.
Is TDS the final tax on dividends?
No. If you are in the 30% slab you will owe more; if your income is below the taxable limit you can claim the TDS back as a refund.
Can I avoid TDS on dividends?
Submit Form 15G (or 15H if you are a senior citizen) to the company if your total income is below the basic exemption limit.
What if I don’t give my PAN?
TDS jumps to 20% on the dividend. Always keep your PAN updated with your broker and the company’s RTA.
Can I deduct expenses against dividend income?
Only interest on loans taken to invest, capped at 20% of the dividend income. Brokerage, advisory fees and salaries are not deductible.
Are mutual fund dividends taxed the same way?
Yes — taxed at slab, with 10% TDS above ₹10,000 a year under section 194K.
How do I report dividends in my ITR?
Report the gross dividend (before TDS) under ‘Income from Other Sources’ and claim the TDS credit from Form 26AS/AIS.
Are dividends from foreign shares taxed differently?
Yes — foreign dividends are fully taxable at slab with no ₹10,000 threshold, and may need Schedule FA disclosure plus Form 67 for foreign tax credit.
Do I pay tax on dividends in the new regime?
Yes. Dividends are taxed at slab rates under both regimes — the regime choice only changes which deductions you can claim elsewhere.