# Dividend Tax Calculator FY 2026-27: Slab Tax and TDS > Dividend tax calculator for FY 2026-27: tax on dividends from shares and IDCW funds at your slab, the 10% TDS above INR 10,000 and the balance due. Source: https://trykosh.com/tools/dividend-tax-calculator Free tool - Capital gains # Dividend tax calculator for shares and mutual funds Dividends are taxed in your hands at your slab rate. Enter your dividends and salary to see the real tax, the TDS companies deduct, and what you still need to pay. Rules checked 25 October 2026Free - no sign-upRuns in your browser Tax on your dividends INR 31,200 20.8% of INR 1,50,000 - taxed at your slab TDS deducted**INR 12,000** Extra tax to pay**INR 19,200** Dividends after tax**INR 1,18,800** You keep **INR 1,18,800**Tax **INR 31,200** Dividends received INR 1,50,000 Taxable dividend income INR 1,50,000 Tax without dividends INR 1,50,800 Tax with dividends INR 1,82,000 Tax on dividends INR 31,200 TDS at 10% on payers above INR 10,000 INR 12,000 Dividends are added to your income and taxed at your slab rate. Pay any balance as advance tax: dividend income often triggers it for retirees and investors. ## Upload your statement and Kosh does this for you. Upload your statements and Kosh keeps a running estimate of the tax on your gains, so March holds no surprises. [Start free](/signup?via=tool-dividend-tax-calculator) ## How the dividend tax calculator works Since FY 2020-21, companies and mutual funds don't pay dividend distribution tax. Instead, every rupee of dividend you receive is added to your income under 'income from other sources' and taxed at your slab rate. The calculator works out your tax with and without the dividends, so the difference is exactly what the dividends cost you. Each company, and each mutual fund house for IDCW payouts, deducts TDS at 10% if it pays you more than INR 10,000 in a year. Without a PAN on record, TDS is 20%. Enter the part of your dividends that came from payers above INR 10,000 to see the TDS. Budget 2026 removed the deduction for interest paid on money borrowed to buy shares or units. Earlier, up to 20% of dividend income could be offset by such interest; from FY 2026-27 the full dividend is taxable. The calculator shows any loan interest you enter but doesn't deduct it. Because dividends are slab income, the new regime's 87A rebate applies if your total income stays within INR 12 lakh. Higher earners in the 30% slab effectively lose 31.2% of every dividend to tax. Tax on dividends = tax(salary + dividends) − tax(salary) TDS 10% of dividends from each payer above INR 10,000 ## Worked example: Farah, a INR 30 lakh earner with a dividend portfolio Farah, a consultant in Mumbai, earns INR 30 lakh and received INR 2.4 lakh in dividends, INR 2 lakh of it from companies paying her over INR 10,000 each. She paid INR 20,000 interest on a loan against securities used to buy shares, which is no longer deductible. At her 30% slab the dividends add INR 74,880 to her tax. TDS of INR 20,000 was deducted, leaving INR 54,880 to pay. Tax on your dividends INR 74,880 31.2% of INR 2,40,000 - taxed at your slab TDS deducted**INR 20,000** Extra tax to pay**INR 54,880** Dividends after tax**INR 1,65,120** You keep **INR 1,65,120**Tax **INR 74,880** Dividends received INR 2,40,000 Loan interest (not deductible) INR 20,000 Taxable dividend income INR 2,40,000 Tax without dividends INR 4,75,800 Tax with dividends INR 5,50,680 Tax on dividends INR 74,880 TDS at 10% on payers above INR 10,000 INR 20,000 Dividends are added to your income and taxed at your slab rate. Pay any balance as advance tax: dividend income often triggers it for retirees and investors. [Load this example into the calculator ->](?dividends=240000&bigPayers=200000&loanInterest=20000&salary=3000000#calculator) ## Good to know - The TDS threshold on dividends rose from INR 5,000 to INR 10,000 per payer from FY 2025-26. - Dividend income is taxed in the year it's declared or paid, whichever is earlier. Check your AIS for the amounts companies have reported. - Surcharge on dividend income is capped at 15%, like capital gains, for incomes above INR 50 lakh. - Residents can submit Form 15G or 15H to the company's registrar if their tax is nil, to avoid TDS. ## Frequently asked questions Are dividends taxable in India? Yes. Dividends from Indian companies and IDCW payouts from mutual funds are fully taxable at your slab rate. There's no separate exemption limit for dividends. What is the TDS rate on dividends? 10% if a company or fund house pays you more than INR 10,000 in a financial year, and 20% if you haven't given your PAN. TDS is adjusted against your final tax when you file. Can I deduct interest on loans taken to buy shares? Not from FY 2026-27. Budget 2026 removed the deduction for interest expenditure against dividend and mutual fund income. Earlier, up to 20% of the dividend could be offset. Is it better to choose IDCW or growth in mutual funds? For tax, IDCW payouts are taxed at your slab every year, while growth options are taxed only when you redeem, often at lower capital gains rates. Kosh doesn't recommend specific options; compare the tax for your slab using this and the mutual fund tax calculator. ## Sources and assumptions - [Income Tax Department](https://www.incometax.gov.in/) - [Union Budget 2026-27](https://www.indiabudget.gov.in/) Rules and rates last checked on 25 October 2026. Results are estimates for planning and education, not tax, legal or investment advice. Kosh is an educational financial planning tool by Primedepth Labs. It is not a SEBI-registered investment adviser and does not offer personalised investment advice, hold your money or execute trades. Markets carry risk; read scheme documents carefully and consult a registered adviser before acting.