Why have I received dividend lower than I should have?

I am an investor holding shares of a Company. The dividend I received is less than the amount I should have received.

Hey @rajat1993,

You have received less dividend since the Company has deducted TDS on dividend and credited the remaining amount to your account.

Under Budget 2020, the Finance Minister had introduced provisions to deduct TDS on the dividend.

  • Sec 194 - A Company should deduct TDS at 10% on dividend paid on equity shares if the dividend amount exceeds INR 5,000.
  • Sec 194K - An AMC should deduct TDS at 10% on dividend paid on equity mutual funds if the dividend amount exceeds INR 5,000

As per the above provisions, the Company / AMC would deduct TDS on dividend paid on or after 1st April 2020. Due to COVID-19, the TDS Rate was reduced to 7.5% for the remaining part of FY 2020-21.

Read more here - TDS on Dividend paid in FY 2020-21