Automotive Axles Limited has made a regulatory disclosure regarding the deduction of tax at source (TDS) on the proposed final dividend payment for the financial year ended 31st March 2026.

Dividend Recommendation and Approval Process

The Board of Directors at its meeting held on Tuesday, 19th May 2026 recommended a Final Dividend of ₹32 (320%) per Equity Share of ₹10 each fully paid-up for FY26. This dividend is subject to approval by shareholders at the 45th Annual General Meeting (AGM) scheduled for Wednesday, 12th August 2026.

Record Date and Payment Method

The Record Date for determining shareholder eligibility is Wednesday, 5th August 2026. The dividend, if approved, will be paid only in electronic mode to shareholders holding equity shares as on the record date.

Tax Treatment

According to the Income Tax Act, 2025, dividend income is taxable in the hands of shareholders. The company is required to deduct tax at source at the time of dividend payment. The applicable TDS rate varies depending on the residential status of the shareholder and documents submitted.

Resident Shareholder TDS Rates

  • No TDS if total dividend amount does not exceed ₹10,000 in a financial year for resident individual shareholders
  • 10% TDS for shareholders having PAN
  • 20% TDS for shareholders without PAN or with invalid PAN
  • NIL TDS for shareholders submitting Form 121 (erstwhile Form 15G/15H) with eligibility conditions met
  • Rate as per order for shareholders submitting Order under Section 395
  • NIL TDS for certain entities like LIC, GIC with declaration of beneficial interest
  • NIL TDS for entities covered under Section 393(2) (Mutual Funds, Government) with appropriate documentation

Resident individual shareholders must ensure Aadhaar is linked with PAN, otherwise PAN will be considered inoperative and 20% TDS will apply.

Non-Resident Shareholder TDS Rates

  • Foreign Institutional Investors/FPIs: 20% (plus surcharge and cess) or Tax Treaty rate, whichever is lower
  • Other Non-Resident Shareholders: 20% (plus surcharge and cess) or Tax Treaty rate, whichever is lower
  • Rate as per order for shareholders submitting Order under Section 395

Non-resident shareholders must submit specific documents including PAN, Tax Residency Certificate valid for FY 2026-27, Form 41, and self-declarations regarding Permanent Establishment and beneficial ownership.

Document Submission Deadline

Shareholders must submit all tax exemption forms and supporting documents through the RTA portal (https://ipostatus.integratedregistry.in/TaxExemptionRegistration.aspx) on or before Wednesday, 5th August 2026 till 05:00 PM (IST). No communications received after this deadline will be considered.

Additional Provisions

  • Shareholders with multiple accounts under different status categories will have higher applicable tax rate applied to their entire holding
  • The company is not obligated to apply beneficial DTAA rates and will depend on completeness of documentation
  • Shareholders are responsible for any income tax demands arising from misrepresentation or omission of information
  • Shareholders must ensure bank account details are updated in their demat accounts/folios for timely dividend credit
  • TDS certificates will be sent post-payment, and electronic credit will be visible in Form 168 (erstwhile Form 26AS)