Tax on dividend income. Dividends are taxed in the shareholder's hands at slab rates in India since the dividend distribution tax was abolished, and only interest on borrowing is deductible, capped at twenty percent.
Also called: dividend income tax, tax on dividends.
₹54,000 on dividend income of 1,80,000 at 30%. ₹18,000 was withheld at source, leaving ₹36,000 to pay. No interest deduction claimed. It is the only deduction available against dividend income.
Computed from the published rates for the tax year you selected, which is not necessarily the current year. A calculation, not tax advice, and it does not know anything about your circumstances beyond the figures entered.
This is what the calculation gives for the numbers you entered. It is an estimate, not advice, and it knows nothing about your situation beyond those numbers. Rules for India change on a published schedule; the effective date is shown on every rule-based tool.
India abolished the dividend distribution tax and moved the charge to the recipient, so dividends are taxed at your slab rather than at a flat company-level rate. That made dividends materially worse for higher-rate taxpayers than they had been. The only deduction permitted is interest on money borrowed to make the investment, capped at twenty percent of the dividend. TDS applies above a threshold and is creditable. In the US, qualified dividends attract preferential long-term capital gains rates instead of ordinary rates, which is what the treatment selector switches between.
in India, interest on borrowed money is deductible against dividends but capped at twenty percent of the dividendEach of these is asserted on every build. If a change to the engine ever moved one of these answers, the build would fail before the page could print it.
Tax on dividends₹54,000
30% of 1,80,000, less 10% withheld
Open this exampleTax on dividends₹43,200
boundary: 36,000 not 100,000
Open this exampleTax on dividends₹0
degenerate case
Open this exampleFormula version 1.0.0 · definition 1.0.0 · India · Report a problem with this calculator