Arvind Limited has issued a communication to its shareholders regarding the Tax Deduction at Source (TDS) framework applicable to the payment of dividend for the Financial Year 2025-26. This is pursuant to the provisions of the Income-tax Act, 2025 (the "IT Act").

Dividend Recommendation

The Board of Directors of Arvind Limited, at their meeting held on May 15, 2026, recommended payment of a final dividend of ₹4.50 per equity share for the Financial Year ended March 31, 2026. This is subject to approval by shareholders at the ensuing Annual General Meeting (AGM).

General TDS Framework

The Company is required to withhold taxes on the dividend paid to shareholders as per the IT Act, effective April 1, 2026. The withholding tax rate varies depending on the residential status of the shareholder and the documents submitted by them.

Key Deadlines

Shareholders must upload all requisite declarations and documents on the designated portal (https://web.in.mpms.mufg.com/formsreg/submission-of-Form-121-41.html) on or before September 4, 2026. Communications received after this date will not be considered for determining the TDS rate for the current dividend.

TDS Rates for Resident Shareholders

  • No TDS will be deducted if the total dividend paid during Tax Year (TY) 2026-27 to a resident individual shareholder does not exceed ₹10,000.
  • 10% TDS rate applies if a valid PAN is updated with the Depository Participant (for demat shares) or the RTA (for physical shares).
  • 20% TDS rate applies if PAN is not provided, is invalid, or is not linked with Aadhaar as required under Section 262 of the Act.
  • Nil or lower TDS rates are available for specific entities (e.g., LIC, GIC, Business Trusts, Category I & II AIFs, entities under sections 393(5) and 393(6)) upon submission of a self-declaration (Annexure-1) and supporting documents like a PAN card and registration certificate.
  • The rate specified in a lower/nil tax deduction certificate issued by the Income Tax Department u/s 395(1) of the Act will be applied if provided.

TDS Rates for Non-Resident Shareholders

  • Foreign Institutional Investors (FIIs)/FPIs: A rate of 20% (plus surcharge and cess) or the beneficial tax treaty rate, whichever is lower. Requires submission of Form 41, a Tax Residency Certificate (TRC), and a self-declaration (Annexure-3).
  • Category III AIF in IFSC: A rate of 10% (plus surcharge and cess). Requires a self-declaration (Annexure-4).
  • Other Non-Residents (except from Notified Jurisdictional Areas): A rate of 20% (plus surcharge and cess) or the beneficial tax treaty rate. Requires submission of Form 41, a TRC, and a detailed self-declaration on letterhead regarding PE/beneficial ownership (Annexure-3). Additional documents are required for residents of Singapore.
  • Non-Residents from Notified Jurisdictional Areas: A flat rate of 30%.
  • Sovereign Wealth Funds and Pension Funds: Nil TDS if notified by the Central Government and upon submission of the relevant notification and a self-declaration (Annexure-5 & 6).
  • Subsidiary of ADIA: Nil TDS upon submission of a self-declaration (Annexure-7).
  • The rate specified in a lower/nil tax deduction certificate issued by the Income Tax Department u/s 395(1) of the Act will be applied if provided.

Procedural Notes and Disclaimers

  • The company's RTA is MUFG Intime India Private Limited (formerly Link Intime India Private Limited).
  • Shareholders are urged to update their KYC details (PAN, email ID, address, mobile number, bank account) with the RTA or their Depository Participant.
  • Soft copies of TDS certificates will be issued to shareholders via their registered email addresses.
  • The company reserves the right to verify PAN details through NSDL utilities and independently review all submitted documents. It may reject documents found discrepant or incomplete and deduct tax at a higher rate.
  • The company will not be liable for any higher TDS deducted; shareholders must file their income tax returns to claim refunds.
  • Shareholders are responsible for indemnifying the company against any tax demands arising from misrepresentation or omission in the information they provide.
  • All queries are to be directed to the RTA at investor.helpdesk@in.mpms.mufg.com.

Additional Compliance (Rule 203)

A declaration must be filed if the dividend income is assessable in the hands of a person other than the registered shareholder. This requires details like the name, address, PAN of the actual person, and the proportion of credit. This must also be uploaded by September 4, 2026.

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