Tds rate

What is the rate of tds on dividend payment?

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Quick Summary
This discussion clarifies the TDS (Tax Deducted at Source) rate applicable to dividend payments under Section 194 of the Income Tax Act. For the financial year ending March 31, 2021, the rate was 7.5%. Following this, the rate may increase to 10%. Notably, for the current financial year, a 7.5% TDS rate applies to the entire dividend payout, with no TDS deducted on dividends below £5,000.

Under section 194 of I T Act up 31/3/2021 March 7.50 % , After that May be 10% .
Above 5k payout 7.5% for current financial year
For this FY 2020-2021, TDS rate is 7.5% on entire dividend . Subject to no TDS on dividend below 5000/-

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