About this tool

Dividend Income Tax Calculator India

Tax on Indian dividend income at your slab rate, with the 20% interest deduction cap under section 57 and section 194 TDS credit.

The Dividend Income Tax Calculator India works out the income tax a resident individual owes on dividends from Indian companies and mutual funds, which since the Finance Act 2020 are taxed at the shareholder's own slab rate as income from other sources under section 56(2)(i) of the Income-tax Act, 1961 — provisions now carried forward under the Income-tax Act, 2025, which took effect 1 April 2026 for Tax Year 2026-27. It applies the only deduction the law allows — interest on money borrowed to buy the shares, capped at 20% of the dividend under the second proviso to section 57(1) — then credits the tax already withheld under section 194 and shows what is still payable. It is aimed at retail investors reconciling their Annual Information Statement before filing.

How to use Dividend Income Tax Calculator India

1. 1

   Open Dividend Income Tax Calculator India on AltFTool — it loads instantly in your browser.

2. 2

   List each payer under "Dividend received in the financial year" — Company or fund 1 with its Dividend received (INR) — and press "Add another payer" for the rest, so the ₹10,000 section 194 threshold is applied company by company.

3. 3

   Under "Your tax position" set "Interest on money borrowed to invest (INR)", "Your marginal slab rate" (0 to 30%) and "Surcharge on total income", and tick "PAN furnished to the registrar" or "Form 15G / 15H filed for nil TDS" as they apply.

4. 4

   "Total tax on dividend income" appears with rows for "Interest deduction allowed (max 20%)", Taxable dividend, "Health and education cess at 4%", "TDS already deducted under section 194" and Balance tax payable or Refund due, plus a "TDS company by company" table; Copy result copies it.

Why use Dividend Income Tax Calculator India

• Per-payer TDS logic

  Applies the ₹10,000 section 194 threshold company by company, the way registrars actually deduct.

• Section 57 cap built in

  Splits your interest cost into the allowed 20% and the part that is disallowed outright.

• Surcharge ceiling honoured

  Restricts surcharge on dividend to 15% even when your other income sits in a higher band.

Common use cases

• Check whether the 10% TDS your registrar deducted covers the tax due, or whether a 30%-slab investor still owes the balance.
• See how much of the interest on a loan-against-shares actually reduces dividend income once the 20% ceiling bites.
• Work out whether dividend receipts push your balance tax past ₹10,000 and trigger advance tax instalments under section 208.

Frequently asked questions