What is a dividend? A 4-minute explainer for Indian investors
Companies share profits with shareholders as dividends. Here's how ex-dates, record dates and TDS work in India.
A dividend is a slice of company profit paid to shareholders, usually per share. If ITC pays ₹6.25 per share and you hold 100 shares, ₹625 lands in your bank account.
Three dates matter: the announcement date, the ex-dividend date (you must own the stock before this day) and the record date (when the company checks the shareholder list). Payment typically follows within 30 days.
In India, dividends are taxed as income at your slab rate. Companies deduct 10% TDS if your annual dividend from them exceeds ₹5,000 — you can claim it back while filing ITR.
BloomFolio's Dividends tab forecasts payouts from your holdings and shows every ex-date on a calendar so nothing slips past you.
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Dividends, tax, habits — short reads for Indian investors, every Sunday.
Educational content only. For informational purposes only. Not investment advice.