The dividend will be paid within 30 days of approval.
The company has advised investors to update their bank account details, including IFSC and KYC details with their depository.
Investors should know that the provisions of the Income Tax Act, 1961 (the IT Act) following an amendment by the Finance Act, 2020 made the dividend taxable in the hands of shareholders with effect from April 1, 2020.
The companies, therefore deduct tax at source (TDS) as per the applicable rates on dividend payable to its shareholders.
The applicable withholding tax rate would vary depending on the residential status, category of the shareholder and is subject to submission of requisite declarations / documents to the company during the period specified by the company i.e. 27th January, 2026 to February 6, 2026.
Tax deductions for residents
1) Valid PAN updated with the depository participant
Shareholders can update with the depository participant by submitting the PAN / Email ID / Mobile Number before the record date so that TDS will be deducted at 10% (where applicable).
No deduction of tax would be made if the total dividend income paid to a resident individual member during FY26 is less than Rs 10,000.
2) No PAN / Invalid PAN/ Inoperative PAN: 20%
3) Availability of a lower/nil tax deduction certificate issued by Income Tax Department u/s 197 of the IT Act:
Rate specified in Lower tax withholding certificate obtained from IT department. The investors should submit a self-attested copy of PAN card and a copy of lower tax withholding certificate obtained from IT Department.
4) An Individual furnishing Form 15G/ 15H: NIL
The investors should submit a self-attested copy of PAN card. Declaration in Form No. 15G (applicable to an individual less than 60 years old) or Form No. 15H (applicable to an Individual who is 60 years or older), fulfilling prescribed conditions.
This form can only be submitted if the shareholder’s tax on estimated total income for FY26 is Nil.
5) Shareholders to whom section 194 of the IT Act does not apply:
NIL. In this category are LIC, GIC, Business Trust (REIT, InVIT) etc.
6) Category I and II Alternative Investment Fund (AIF):
NIL / Category III AIF: 10%
Non-resident shareholders
Foreign Institutional Investors (FIIs): 20% (plus applicable surcharge and cess) or tax treaty rate.
AIF Category III located in IFSC: 10% (plus applicable surcharge and cess)
For Sovereign Wealth funds and Pension funds notified by Central Government u/s 10(23FE) of the IT Act the tax deductions are NIL. There is no tax deduction for wholly-owned subsidiary of Abu Dhabi Investment Authority (ADIA).
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