If you got dividends from stocks or mutual funds this year, ₹1 lakh or more, 10% TDS was already deducted before it reached your account.
Whether you get that money back or owe more depends entirely on your income tax slab — filing your ITR is what settles it.
Someone in the 5% slab gets most of that TDS refunded; someone in the 30% slab ends up owing more.
What this means for you
- If your total income keeps you in the 0% or 5% slab, you're likely due a refund — but only if you file your ITR this year.
- If you're in the 20% or 30% slab, that 10% TDS wasn't enough — expect an additional tax bill when you file.
- On ₹1 lakh dividend income, that's a swing of roughly ₹5,000 to ₹20,000 depending on your slab.
What you can do
- Check Form 26AS or AIS to see exactly how much TDS was deducted on your dividends this year.
- File your ITR carefully, report all dividend income, and let the system calculate your actual refund or tax due.
Either way, this is money you already earned — filing correctly just makes sure it lands in the right pocket.
Grow with clarity 🌱