Add Dividend Income

Add Dividend Income

Companies distribute dividends to their shareholders as a share of their profits. The amount received depends on the number of shares held by the investor. For tax purposes, dividend income is classified under the head "Income from Other Sources."

Common Questions About Dividend Income

Can I claim expenses related to dividend income?
Yes. If you’ve taken a loan to purchase shares and earned dividend income, you can claim the interest paid on that loan as a deduction. However, the deduction is capped at 20% of the dividend income received.

Do I need to report dividend income including TDS?
Yes. If your dividend income exceeds ₹5,000, the company is required to deduct 10% TDS before making the payment.
When filing your tax return, you must report the gross dividend income (i.e., before TDS deduction). You can then claim credit for the TDS under the applicable section.

Steps to add interest income

There are two ways to add your dividend income

1. Autofill from Income Tax Department

  • Navigate to File > Incomes > Other IncomesClick Connect to import data from ITD

  • Connect to ITD via Aadhaar OTP or credentialsConnect to ITD via Aadhaar OTP or credentials


    Your dividend income will be auto-filled. You can review it and proceed further.

2. Add Manually

  • Navigate to File > Incomes > Other Incomes, select Dividend Income
  • Enter the dividend income amount and, if applicable, claim any interest paid on loans used to buy stocksEnter the dividend income amount and, if applicable, claim any interest paid on loans used to buy stocks

Need Help?

Raise a ticket to get in touch with us

    • Related Articles

    • Add Royalty Income

      Royalty income refers to the earnings received when someone pays you for the right to use your intellectual property—such as a patent, copyright, or natural resource. For instance, when authors allow publishers to sell their books, they receive a ...
    • Add Salary Income

      For most taxpayers in India, salary is the primary source of income. It comprises various components such as basic pay, allowances, bonuses, and more—all of which need to be accurately reported while filing your tax return. Understanding these ...
    • Add Salary Income without Form 16

      Form 16 is a document issued by your employer that helps you report your salary in the tax return. However, you may not receive Form 16 for the following reasons Salary income is below the taxable limit and no TDS has been deducted Your employer is ...
    • Add Rental Income for a Jointly Owned Property

      Jointly-owned property is held by two or more people—whether spouses, business partners, friends, or family members. It’s a smart tax move since rental income, property taxes, home loan interest, and principal repayment are shared among co-owners. ...
    • Manage Interest Income

      In India, saving is often valued over spending—and interest income plays a key role in helping individuals grow their wealth steadily. It is the income earned from various financial instruments such as fixed deposits, savings accounts, bonds, and ...