Abbott India Limited has issued a comprehensive communication regarding Tax Deduction at Source (TDS) procedures for the dividend for financial year 2025-26 under the Income Tax Act, 2025.

Dividend Declaration Details

The Board of Directors at its meeting held on May 11, 2026 recommended:

  • Final dividend of ₹525 per equity share of ₹10 each
  • Special dividend of ₹131 per equity share of ₹10 each

Total recommended dividend: ₹656 per share

This dividend is subject to approval by members at the Annual General Meeting scheduled for August 13, 2026. If approved, the dividend will be paid on or after August 18, 2026 to members whose names appear on the Register of Members and beneficial owners as of July 24, 2026 (Record Date).

TDS Implementation Under New Tax Regime

Pursuant to the Income Tax Act, 2025, dividends paid by the company shall be taxable in the hands of shareholders, requiring TDS deduction at prescribed rates. The company has communicated TDS rates and required documents to all shareholders who have registered their email addresses.

Key Deadlines

Shareholders must register/update their details including PAN, bank details, email address, mobile number, residential address, and residential status by July 24, 2026 along with ISR Forms. All TDS-related documents must be submitted to KFin Technologies Limited (RTA) by July 24, 2026 via https://ris.kfintech.com/form15.

TDS Rates for Resident Members

Resident Individuals
  • No TDS if total dividend during FY 2026-27 does not exceed ₹10,000
  • 10% TDS if dividend exceeds ₹10,000, provided valid Form 121 for tax year 2026-27 is submitted
  • 20% TDS in absence of PAN/valid PAN/inoperative PAN
Resident Non-Individuals
  • 10% TDS with valid PAN
  • No TDS for specific entities upon submission of required documents:
  • Insurance companies (self-declaration + PAN copy + registration evidence)
  • Mutual funds (self-declaration + PAN copy + registration certificate)
  • Alternative Investment Funds Category I/II (self-declaration + PAN + registration)
  • Other exempt entities under Sections 393/400 of IT Act

TDS Rates for Non-Resident Members

Non-resident members can avail Double Tax Avoidance Agreement benefits upon submission of:

  • Self-attested PAN copy
  • Tax Residency Certificate (TRC) for FY 2026-27
  • Online/electronically generated Form 41

Specific rates apply:

  • 20% plus surcharge and cess OR tax treaty rate (whichever beneficial)
  • 10% plus surcharge for Alternative Investment Fund - Category III in IFSC
  • 20% plus surcharge for FIIs/FPIs OR tax treaty rate
  • Nil for entities covered under Section 11 read with Schedule V [Table Sl. No. 7]

Important Provisions

  • PAN registration is mandatory for all categories
  • Aadhaar-PAN linking required for resident individuals (inoperative PAN treated as invalid)
  • Company reserves right to verify PAN through NSDL utility
  • TDS determination subject to company's verification and assessment
  • No refunds for excess TDS deducted - members must claim refund in income tax returns
  • All TDS rates subject to applicable surcharge and cess

Documentation Requirements

Members must submit scanned copies of required documents by July 24, 2026. Self-attested documents must include "certified true copy of the original" notation. The company reserves right to reject incomplete or discrepant documents.

TDS Certificate and Compliance

Company will email soft copies of TDS certificates to registered email IDs after dividend payment and ETDS return filing. Members can view TDS credit in Form 168 available through income tax e-filing portal.

Additional Notes

The communication emphasizes that this is not tax advice and members should consult tax professionals. All queries should be directed to KFin Technologies Limited at einward.ris@kfintech.com.

The complete communication with all annexures is available on the company website at www.abbott.co.in.