This Dividend Tax Calculator will help you determine the tax on your dividend income based on your total taxable income and the applicable tax rate. Follow these steps:
Step 1: Enter Your Dividend Income
Dividend income includes all the earnings you received from stocks, mutual funds, or REITs during the financial year.
Example:
- Dividend from Company A = Rs. 10,000
- Dividend from Company B = Rs. 5,000
- Total Dividend Income = Rs. 15,000
Step 2: Enter Your Total Taxable Income
Add up all your other sources of income, such as salary, capital gains, rental income, etc.
Example:
- Salary = Rs. 7,00,000
- Total Dividend Income = Rs. 15,000
- Total Taxable Income = Rs. 7,15,000
Step 3: Determine Your Tax Slab
Refer to the income tax slabs to determine your tax rate based on your total taxable income.
| Income Range | Tax Rate |
|---|---|
| Up to Rs. 2.5 lakh | Nil |
| Rs. 2.5 lakh to Rs. 5 lakh | 5% |
| Rs. 5 lakh to Rs. 10 lakh | 20% |
| Above Rs. 10 lakh | 30% |
Step 4: Calculate Your Dividend Tax
Multiply the dividend income by the applicable tax rate from your tax slab.
Example:
If your total taxable income is Rs. 7,15,000, you fall into the 20% tax slab.
So, Dividend Tax = Rs. 15,000 * 20% = Rs. 3,000.
Step 5: Apply TDS (Tax Deducted at Source)
If your dividend income exceeds Rs. 5,000 in a year, TDS (Tax Deducted at Source) will be deducted at 10%. You can claim a refund if your total taxable income is below Rs. 2.5 lakh by submitting Form 15G/15H.