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Why is the dividend amount received lesser than what it should be?

The dividend amount received may be lesser than expected due to the application of Tax Deducted at Source (TDS) on dividends declared by equity shares and mutual funds. A TDS of 10% will be deducted from dividends above ₹5000.

However, the TDS rates can be different in the following scenarios:

  1. TDS of 20% will be applicable If the registrar (RTA) of the company doesn't have the PAN details of the investor in its records.
  2. TDS of 20% will be applicable for all non-resident shareholders.
  3. If form 15G or 15H is filed with the RTA of the company issuing dividends, TDS is deducted at a lower/NIL rate.

Did you know? The TDS paid on dividends is part of the tax paid for the financial year. This can be verified in the form 26AS, available on the income tax portal. To learn more about form 26AS, visit