# Nepal Dividend Calculator

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

https://laganisaathi.com/calculators/dividend.md

## Formula

```
bonus_quantity     = quantity × bonus% ÷ 100
bonus_amount       = quantity × face value × bonus% ÷ 100
bonus_tax          = bonus_amount × 5%
cash_amount        = quantity × face value × cash% ÷ 100
cash_tax           = cash_amount × 5%
total_tax          = bonus_tax + cash_tax
cash_receivable    = cash_amount − total_tax
```

Income Tax Act 2058 section 88 withholds 5% on the face value of bonus shares.
That is why a 10% bonus is almost always paired with a cash dividend of about
0.5263%: 10 × 5/95.

## Cash dividend goes to your bank, not your demat

CDSC disburses the non-cash benefit to your demat account, and the cash benefit
to the bank account on your demat record. **Cash dividend never appears in
MeroShare transaction history**, so it cannot be verified from MeroShare at all.

If your bank account number on file is stale after a bank merger, cash dividends
can be lost silently for years. Check "My Bank Request" in MeroShare.

## Worked example

100 shares, par value Rs 100, bonus 10%, cash 5%:

- Bonus quantity = 100 × 10% = 10 shares
- Bonus face value = 100 × Rs 100 × 10% = Rs 1,000
- Tax on bonus at 5% = Rs 50
- Cash amount = Rs 500
- Tax on cash at 5% = Rs 25
- Total tax = Rs 75
- **Cash received = Rs 425**

The cash benefit lands in the bank account on your demat record, and the
Rs 75 withheld never reaches either account.

## Why the bonus quantity is not rounded

CDSC publishes no rounding rule for fractional bonus entitlements, and the
behaviour is not a simple floor. Practitioner reports describe issuers
truncating the fraction, rounding up, and carrying the fraction forward in the
system until it accumulates to a whole share. Several listed Nepali companies
have a non-integer paid-up share count, which is consistent with fractions being
retained rather than discarded.

This calculator therefore reports the exact figure rather than guessing a
rounding rule. If you need the exact entitlement for a specific company, its AGM
or bonus notice or its share registrar is authoritative.

## Eligibility

You must hold the shares on the book closure date. In Nepal the register closes
for one day, and the record date is what binds. Selling on or after the book
closure date costs you the entitlement.

## Related

- [Bonus share adjustment price](https://laganisaathi.com/calculators/bonus-adjustment-price)
- [Dividend, bonus and right-share news](https://laganisaathi.com/dividend-news)
- [Dividend newsletter](https://laganisaathi.com/guides/dividend-newsletter)