Dividend Yield Calculator India — FY 2025-26
Calculate dividend yield on any stock, net dividend after TDS and income tax, reconcile TDS refund or shortfall, and compare dividend vs growth mutual fund options. Dividends are taxed at your slab rate since the abolition of DDT in FY 2020-21. TDS at 10% applies under Section 194 when dividend exceeds ₹5,000 per company per year.
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How to Use This Calculator
Dividend Yield tab
Enter the current market price of the stock (e.g., ₹250), the annual dividend per share (e.g., ₹12), and the number of shares you hold. The calculator computes the dividend yield percentage, gross dividend, TDS deducted under Section 194, tax at your slab rate, and the net dividend you actually receive after tax.
Dividend Tax tab
Enter your total dividend income from all sources — shares, mutual funds, and other investments. Select your income tax slab. The calculator shows TDS deducted at 10%, your actual tax liability at slab rate, and whether you owe additional tax or are due a refund when filing your ITR.
Dividend vs Growth tab
Compare the dividend option (taxed at slab rate every year) with the growth option (taxed at LTCG 12.5% only on redemption). Enter the investment amount, expected return, dividend yield, and holding period. The calculator shows the after-tax value of each option and the tax saving from choosing growth.
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The Formula
Dividend yield and tax are computed as follows:
Dividend Yield (%) = (Annual Dividend per Share ÷ Current Market Price) × 100
Gross Dividend:
Gross Dividend = Annual Dividend per Share × Number of Shares
TDS (Section 194):
TDS = 10% of Gross Dividend (if total dividend from a company > &rupee;5,000/FY)
Tax on Dividend:
Tax = Gross Dividend × Slab Rate + Surcharge + 4% Cess
(Dividends taxed as "Income from Other Sources" since FY 2020-21)
Net Dividend:
Net Dividend = Gross Dividend − Total Tax
Net Yield:
Net Yield (%) = Net Dividend per Share ÷ Market Price × 100
Since the abolition of DDT (Dividend Distribution Tax) in FY 2020-21, dividends are fully taxable in the hands of the recipient at their applicable income tax slab rate. TDS at 10% is deducted at source under Section 194 if the total dividend from a single company exceeds &rupee;5,000 in a financial year.
Example
Priya — holds 500 shares of Coal India, 30% slab taxpayer
Priya holds 500 shares of Coal India Ltd with a current market price of &rupee;400. The company declared a total annual dividend of &rupee;24 per share for FY 2025-26. She is in the 30% tax slab with no surcharge.
Step 1: Calculate dividend yield
Step 2: Calculate gross dividend
Step 3: Calculate tax
Step 4: Net dividend
Despite a headline yield of 6%, Priya's effective yield drops to 4.13% after paying 30% slab tax plus cess. The TDS of &rupee;1,200 is adjusted against her total tax of &rupee;3,744, leaving &rupee;2,544 to pay as self-assessment tax when filing her ITR.