Dividend and bonus share tax calculator
Enter the cash dividend and bonus share percentages a company announced to see the cash that reaches your bank, the bonus shares you get and the tax withheld on both.
Dividend announced
What you get
Rs- Cash you receive
- 4,450.00
- Bonus shares
- 60
- Total tax
- 550.00
- Cash dividend (10% of Rs 100.00 × 500)
- 5,000.00
- Tax on cash dividend (5%)
- −250.00
- Tax on bonus shares (5% of Rs 6,000.00 par value)
- −300.00
- Cash credited to your bank
- 4,450.00
500 shares become 560.
How dividend tax is worked out
Cash dividend = shares × par value × cash %. Bonus shares = shares × bonus %. The tax is 5% of the cash dividend plus 5% of the par value of the bonus shares. Both are deducted from the cash dividend; any bonus tax the cash doesn’t cover is the company’s to pay.
Worked example
500 shares, a 10% cash dividend and 12% bonus shares, par value Rs 100:
| Line | Amount (Rs) |
|---|---|
| Cash dividend (500 × Rs 100 × 10%) | 5,000.00 |
| Tax on cash dividend (5%) | −250.00 |
| Tax on 60 bonus shares (5% of Rs 6,000.00) | −300.00 |
| Cash credited | 4,450.00 |
You end up with 560 shares and Rs 4,450.00 in cash.
Questions
How is dividend calculated in NEPSE?
Dividends are announced as a percent of the par value, usually Rs 100. A 10% cash dividend pays Rs 10 per share before tax; a 10% bonus gives 10 new shares for every 100 you hold on the book closure date.
How much tax is deducted on dividends in Nepal?
5% of the cash dividend is withheld as final tax. Bonus shares are taxed at 5% of their par value. Since SEBON's November 2025 amendment the company is responsible for that tax: it deducts it from the cash dividend and pays any part the cash doesn't cover, so you no longer pay it separately to the share registrar.
Why is my cash dividend so small when there is a bonus?
The tax on the bonus shares is deducted from the cash dividend. Companies often declare a small cash dividend mainly to cover that tax, so little or no cash reaches your bank.
Who gets the dividend?
Shareholders whose shares are in their demat account at book closure. A share bought on the market counts only once it has settled into your account, so check the settlement days before buying close to book closure.