Dividend calculator for NEPSE investors — enter your kitta, face value, cash dividend percentage, and stock dividend percentage, and it shows your gross dividend, TDS deducted, net cash you actually receive, and bonus kitta from the stock dividend. Everything in one calculation.
Dividend Calculator
NEPSE cash & bonus dividends on face value — 5% / 15% TDS on both, net cash, and out-of-pocket tax if cash is short.
Bonus shares are also taxed at face value; tax is usually taken from the cash dividend of the same declaration.
* Dividends are on face value, not market price. TDS 5% (individual) / 15% (institution) applies to cash + bonus face value and is final WHT. Bonus market value will differ.
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How NEPSE dividends are taxed
Dividends are declared on face value (usually रू 100 for equity, रू 10 for mutual funds). Cash and bonus are both taxed: individual 5% and institution 15% of face-value amounts (Income Tax Act s.88 — final WHT). Companies typically deduct tax on both from the cash portion of the same declaration.
Cash vs bonus
Cash dividend pays money after TDS. Bonus (stock) dividend adds free kitta; tax on bonus face value is still due. If cash is too small to cover total TDS, you may need to deposit the shortfall before bonus shares credit to your demat.
How Dividend Works in Nepal — What Most Investors Miss
One thing that confuses a lot of new investors in Nepal: dividends here are calculated on face value, not market price.
So when a company announces 20% cash dividend, they don’t mean 20% of the current share price. They mean 20% of the face value — which is Rs 100 for most banks and companies listed on NEPSE, and Rs 10 for mutual funds.
20% of Rs 100 = Rs 20 per share. That’s your gross cash dividend per kitta.
If you hold 500 kitta and the company declares 20% cash dividend, your gross dividend is 500 × Rs 20 = Rs 10,000. Before TDS.
That face value distinction matters because a stock trading at Rs 1,200 with a 20% dividend still only pays Rs 20 per share — not Rs 240. Many people see a high dividend percentage announced and expect a large payout, then wonder why the actual amount was much smaller.
How to Use the Dividend Calculator — Exact Steps
Cash Dividend % preset buttons At the top you’ll see quick buttons — 5%, 10%, 15%, 20%, 25%, 30%. These are the most common cash dividend percentages companies announce. Tap one to fill the cash dividend field instantly.
Kitta You Hold Enter how many shares of this company you hold. Slider from 1 to 10,000 kitta, or type directly. Use your actual holding from Mero Share.
Face Value per Share Two options — Rs 100 for regular banks and companies, Rs 10 for mutual funds. Select whichever applies to the company you’re calculating for. Getting this wrong changes every number in the output.
Cash Dividend % Enter the cash dividend percentage the company announced. If you used a preset button above, this is already filled. The field also shows the equivalent rupee amount per share below it — so you can immediately see Rs per kitta before calculating.
Stock Dividend (Bonus) % Enter the bonus share percentage if the company announced one. Many NEPSE companies announce both together — say 15% cash and 10% stock. If there’s no bonus share component, leave it at 0%.
Shareholder Type (TDS Rate) Select Individual (5% TDS) or Institution (15% TDS). TDS is deducted from cash dividend before it reaches your bank account. Stock dividends don’t attract TDS at the time of issue.
Click Calculate Dividend
Results split into two sections:
Cash Dividend:
- Gross Dividend — total cash before TDS
- TDS Deducted — amount withheld by the company at source
- Net Cash Received — what actually lands in your bank account linked to Mero Share
Stock Dividend:
- Bonus Kitta Received — number of new shares credited to your DEMAT
- Stock Value (Face) — face value of those bonus shares
- Total Dividend Value — net cash received plus face value of bonus kitta combined
Below that, the Full Calculation Breakdown table shows every line with the formula used — useful for verifying the numbers or understanding exactly how each figure was derived.
Cash Dividend vs Stock Dividend — Key Differences
Cash dividend goes directly to the bank account linked to your Mero Share after TDS is deducted. You receive it within a few weeks of the book closure date. The money is yours to spend, reinvest, or keep.
Stock dividend (bonus share) adds new kitta to your DEMAT account at face value. No cash changes hands, no TDS applies at issue. But your total holding increases, and the market price usually adjusts downward on the ex-dividend date because more shares are now in circulation.
Companies in Nepal regularly announce both together. A “15% cash + 10% bonus” announcement means you get Rs 15 per share in cash (after TDS) and 10 new kitta for every 100 you hold as bonus shares.
The dividend calculator handles both components simultaneously so you see the full picture in one result.
Quick Example
500 kitta held. Face value Rs 100. Company announces 20% cash dividend + 10% stock dividend. Individual investor.
Cash side: Gross dividend: 500 × Rs 100 × 20% = Rs 10,000 TDS at 5%: Rs 500 Net cash received: Rs 9,500
Stock side: Bonus kitta: floor(500 × 10%) = 50 kitta Face value of bonus: 50 × Rs 100 = Rs 5,000
Total dividend value: Rs 9,500 + Rs 5,000 = Rs 14,500
The stock dividend adds Rs 5,000 worth of new shares at face value — though their actual market value will be different once they’re tradeable.
FAQs
Why is my actual cash received less than the dividend announced? TDS. The company deducts 5% (individual) or 15% (institution) from the gross cash dividend before crediting your account. That deduction is a final withholding tax — you don’t need to pay additional tax on it separately during ITR filing.
When does dividend cash reach my account? After the company’s book closure date passes and dividend distribution is processed, the net cash gets credited to the bank account linked with your Mero Share account. Timing varies by company — usually a few weeks to a couple of months post-book closure.
Does bonus kitta have TDS? No TDS at the time of issue. But when you eventually sell those bonus shares in the secondary market, capital gain tax applies on any profit the same way it does for any other share sale.
What face value should I select for mutual funds? Rs 10. Mutual fund units in Nepal have a face value of Rs 10, not Rs 100. Selecting Rs 100 for a mutual fund will give you a completely wrong dividend figure.
The bonus kitta rounds down — why? NEPSE doesn’t allow fractional shares. If 10% bonus on your 535 kitta works out to 53.5 kitta, you receive 53. The calculator floors to the nearest whole number just like the actual allotment process does.
Run your holding through the dividend calculator above before book closure to know exactly what’s coming — how much cash hits your account and how many bonus shares get added to your DEMAT.
TDS rates based on current IRD guidelines. Stock dividend value shown at face value only — actual market value will differ post-listing.