What if dividend is more than 5000?
The company paying dividends has to deduct TDS under section 194 @10% if the shareholder’s total dividend in a year is more than Rs. However, this limit was revised in Budget 2025 and made Rs. All the dividend income is taxable as it is added to your total earnings in a financial year. If the dividend income is higher than Rs. TDS is also applicable. Furthermore, the TDS rate applicable is 20% if you haven’t submitted your PAN.
How to get 50,000 dividends per month?
This means you would need to invest roughly 1,000,000 Rupees. Calculate the Target Investment To earn ₹1 lakh from dividends, let’s do a simple calculation. At an average dividend yield of 3%, you’d need to invest around ₹33–34 lakh. However, at a higher yield of 5%, the required investment drops significantly to around ₹20 lakh.