Distribution Income · FY 2025-26

Dividend Tax Calculator

Calculate TDS and income tax on dividend income under Income Tax Act 2025.

Annual Dividend Income₹50,000

Your Tax Slab30%

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.