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.

This calculator 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). 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

   Enter the values you already know.

3. 3

   Fine-tune the options to match your scenario.

4. 4

   Read the result and use it in your planning or reporting.

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