---
title: "Why did I receive less dividend than expected?"
description: "You received less dividend than the declared amount because companies deduct Tax Deducted at Source (TDS) before crediting the dividend to your…"
category: console
subcategory: corporate-actions
slug: why-did-i-receive-less-dividend-than-expected
canonical: https://support.arrow.trade/console/corporate-actions/why-did-i-receive-less-dividend-than-expected/
---

# Why did I receive less dividend than expected?

> You received less dividend than the declared amount because companies deduct Tax Deducted at Source (TDS) before crediting the dividend to your…

## Short answer

You received less dividend than the declared amount because companies deduct Tax Deducted at Source (TDS) before crediting the dividend to your account. This TDS amount is deposited with the government as an advance tax payment on your behalf.

## How TDS affects your dividend

Companies must deduct tax at source before paying dividends to shareholders in India. The TDS rate depends on your investor category and whether you have provided your PAN details.

## TDS rates for different investor categories

## Example scenario

Resident with PAN (Dividend below threshold) Shares owned: 100 Dividend declared: ₹50 per share Total dividend: ₹5,000 TDS deducted: ₹0 (below ₹10,000 threshold) Amount received: ₹5,000

Shares owned: 100

Dividend declared: ₹50 per share

Total dividend: ₹5,000

TDS deducted: ₹0 (below ₹10,000 threshold)

Amount received: ₹5,000

Resident with PAN (Dividend above threshold) Shares owned: 500 Dividend declared: ₹30 per share Total dividend: ₹15,000 TDS deducted: ₹1,500 (10% of ₹15,000) Amount received: ₹13,500

Shares owned: 500

Dividend declared: ₹30 per share

Total dividend: ₹15,000

TDS deducted: ₹1,500 (10% of ₹15,000)

Amount received: ₹13,500

Resident without PAN (Dividend above threshold) Shares owned: 500 Dividend declared: ₹30 per share Total dividend: ₹15,000 TDS deducted: ₹3,000 (20% of ₹15,000 due to no PAN) Amount received: ₹12,000

Shares owned: 500

Dividend declared: ₹30 per share

Total dividend: ₹15,000

TDS deducted: ₹3,000 (20% of ₹15,000 due to no PAN)

Amount received: ₹12,000

NRI investor Shares owned: 100 Dividend declared: ₹30 per share Total dividend: ₹3,000 TDS deducted: ₹600 (20% of ₹3,000) Amount received: ₹2,400

Shares owned: 100

Dividend declared: ₹30 per share

Total dividend: ₹3,000

TDS deducted: ₹600 (20% of ₹3,000)

Amount received: ₹2,400

## Things to keep in mind

The TDS paid on dividends is part of the tax paid for the financial year. This can be verified in Form 26AS, available on the income tax portal. To learn more about Form 26AS, visit contents.tdscpc.gov.in/en/form26AS-introduction.

Senior citizens or individuals whose total income is below the taxable limit can submit Form 15G / 15H to avoid a TDS deduction.

When filing your income tax return, you can claim credit for TDS deducted on dividends.

All dividend payments to non-individual resident shareholders are subject to Tax Deducted at Source (TDS) without any minimum threshold exemption. The TDS rate is 10% when a valid Permanent Account Number (PAN) is registered with the company or its depository/Registrar and Transfer Agent (RTA), and increases to 20% if PAN details are not provided or are invalid. This tax deduction applies to the entire dividend amount regardless of the payment value.

## Related

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Source: https://support.arrow.trade/console/corporate-actions/why-did-i-receive-less-dividend-than-expected/
Publisher: Arrow / iRage Broking Services LLP