Nature of the Event

The disclosure is a regulatory filing informing the stock exchanges (BSE Limited and National Stock Exchange of India Ltd.) about a shareholder communication concerning TDS procedures for an upcoming dividend payment.

Key Quantitative Figures and Dates

The Board of Directors recommended a Final Dividend of ₹36 per share for FY 2025-26 at its meeting held on May 26, 2026. This is subject to approval by shareholders at the 47th Annual General Meeting (AGM) scheduled for Monday, August 10, 2026.

The Record Date for determining shareholder entitlement to the dividend is July 31, 2026.

For resident individual shareholders, no TDS will be deducted if the total dividend amount payable in FY27 does not exceed ₹10,000.

TDS Rates and Procedures

The communication provides a detailed breakdown of applicable TDS rates and required documentation for different classes of shareholders, as per the Income Tax Act, 2025.

For Resident Shareholders:

  • 10% TDS Rate: Applicable to shareholders with a valid PAN. Shareholders must ensure their PAN and residential status are updated with their Depository Participant (demat) or the Company's RTA (physical shares).
  • NIL TDS Rate: Applicable if a valid Form 121 (erstwhile Form 15G/15H) is submitted, provided all eligibility conditions are met, along with a self-attested PAN copy.
  • 20% TDS Rate: Applicable if the shareholder does not have a PAN, has not furnished it, or has an invalid PAN. Resident individuals must link their Aadhaar with PAN to avoid PAN being considered inoperative.
  • Shareholders can also submit an order under Section 395(1) of the Act for a lower or nil withholding rate.
  • Specific exemptions with supporting documents are outlined for entities like Alternative Investment Funds (AIFs) and those covered under Section 393(5) (e.g., Mutual Funds, Government).

For Non-Resident Shareholders:

  • The default rate is 20% plus applicable surcharge and cess.
  • Non-residents have the option to be governed by the more beneficial rate under the Double Tax Avoidance Agreement (DTAA) between India and their country of tax residence.
  • For Foreign Institutional Investors (FIIs)/Foreign Portfolio Investors (FPIs), the rate is the lower of 20% (plus surcharge/cess) or the Tax Treaty Rate.
  • Required documents include a self-attested PAN copy, a valid Tax Residency Certificate (TRC), a self-declaration in online Form 41, and declarations regarding no Permanent Establishment in India and beneficial ownership.
  • Specific procedures are provided for non-residents without a PAN.

Deadlines and Submission Process

Shareholders must upload all duly filled and signed applicable documents (Form 121, Form 41, various declarations) exclusively on the RTA's weblink (https://ipostatus.integratedregistry.in/TaxExemptionRegistration.aspx) by July 31, 2026, at 17:00 hrs IST.

Submissions to any other email ID or portal will not be considered. No communication regarding tax determination received after this deadline will be considered for the dividend payment.

Data Updation and KYC Compliance

Shareholders must ensure their residential status, PAN, and other KYC details (including mobile number, email ID, bank account details) are updated with their DP (for demat shares) or the Company/RTA (for physical shares) before July 31, 2026.

The company highlighted a SEBI circular (dated June 10, 2024) stating that shareholders holding physical shares with non-updated KYC details will only receive dividends via electronic mode after furnishing KYC details. They are encouraged to become KYC compliant or dematerialize their holdings.

Important Disclaimers and Provisions

The application of TDS rates is subject to due diligence by the Company. In case of ambiguous, incomplete, or conflicting information, tax will be deducted at the maximum applicable rate.

Shareholders holding shares under multiple accounts with a single PAN will be taxed at the highest rate applicable to any of their account statuses.

Shareholders are responsible for any income tax demands arising from misrepresentation or omission in the information they provide and must indemnify the company.

The company clarifies that this communication is a summary of provisions and recommends shareholders consult their own tax advisors. No claim shall lie against the Company for taxes deducted.

Electronic TDS credit will be available in Form 168 from the Income Tax Department's website.