Dividends became taxable in shareholders' hands from FY 2020-21 onwards. Section 194 requires the paying company / mutual fund to deduct 10% TDS if the annual dividend to a shareholder exceeds ₹5,000. NRI shareholders face higher rates (20% generally, subject to DTAA). The calculator handles resident-individual and NRI cases.
When to use this
Use when: you're a regular shareholder who received dividends from listed Indian companies, you're an NRI shareholder wanting to plan around TDS treaty rates, you're a finance team at a listed company computing dividend TDS for shareholder declarations, or filing your ITR and reconciling Form 26AS dividend entries.
Frequently Asked Questions
Is the 5,000 threshold per company or aggregate?
Per company / mutual fund / per shareholder per year. If you receive ₹4,000 each from 5 different companies, none triggers TDS (each is below threshold). The aggregate ₹20,000 is still fully taxable in your ITR though - TDS is just an advance collection mechanism.
What's the NRI dividend TDS rate?
Default 20% (plus surcharge and cess). DTAA treaties with most countries reduce this to 15% (USA), 10% (UK, Singapore, Mauritius), etc. To claim the lower DTAA rate, the NRI must submit Tax Residency Certificate (TRC) + Form 10F + PAN to the paying company before dividend declaration.
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