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.