Calculate tax on dividend income from stocks and mutual funds (FY 2025-26)
₹50,000
30%
Key Points:
Dividends are taxable at your income tax slab rates
10% TDS is deducted if total dividend exceeds ₹5,000 per year
TDS is deducted by the company, but final tax depends on your slab
You can claim TDS credit while filing ITR
Tax Calculation
Gross Dividend Income
₹50,000
TDS Deducted
₹5,000
10% TDS (dividend > ₹5K)
Tax Liability (30% slab)
₹15,000
Health & Education Cess (4%)
₹600
Total Tax Payable
₹15,600
Effective rate: 31.20%
Net Dividend (After Tax)
₹34,400
TDS Already Deducted: Your company/mutual fund has deducted ₹5,000 as TDS. Your actual tax liability is ₹15,600. You need to pay an additional ₹10,600 while filing ITR.