Calculators

Dividend, bonus and tax

Split a dividend into bonus shares and cash, then apply the 5% withholding on face value.

The shares you held on the book closure date.

Rs

Usually Rs 100, sometimes Rs 10 or Rs 500.

%

A percentage of shares held, not of market value.

%

A percentage of face value, paid to your bank account.

Clear

This is the worked example. Change any field above and press Calculate to use your own numbers.

Result

Bonus shares receivable 10.0 shares
Bonus face value रु1,000.0
Tax on bonus (5%) रु-50.0
Cash dividend रु500.0
Tax on cash (5%) रु-25.0
Total tax रु-75.0
Cash you receive रु425.0

Income Tax Act 2058 section 88 withholds 5% on the face value of bonus shares. That is why a 10.0% bonus is usually paired with a cash dividend of about 0.5263%: the cash broadly covers the tax. Cash dividend is paid to your bank account, not your demat account, so it never appears in MeroShare transaction history.

The bonus quantity is shown unrounded on purpose. CDSC publishes no rounding rule and the behaviour is not always a simple floor: some issuers truncate the fraction, others carry it forward until it reaches a whole share.