Before being credited to your bank account, the dividend amount is reduced by the appropriate TDS (tax deducted at source) rate. TDS on dividends may have escaped your notice. If the dividend on equities shares and equity mutual funds exceeds Rs. 5000, TDS is deducted at a rate of 10%.
However, under the following cases, the TDS rates may differ:

1. TDS is deducted at a 20% rate if the company (or the appointed RTA) does not have your PAN on file.
2. TDS is deducted at a rate of 20% in the case of a non-resident shareholder (plus surcharge and cess).
3. TDS is deducted at a lower or zero rate if you have filed Form 15G or 15H with the company in which you invested.
Dividend TDS is deducted from your tax bill at the conclusion of the fiscal year.


Please keep in mind that

If you sold your stock on the ex-date or record date, or if it was pledged, dividends announced before May 16th, 2021, may be deposited to your trading account after deducting TDS. The credit will be updated against your PAN if TDS is deducted. Even if you sold your stock on the ex-date/record date or had it pledged, you will receive the direct benefit of the corporate action from the firm starting May 16th, 2021.