Company Disclosure: TDS on Dividend Distribution

Dividend Declaration Details

The Board of Directors declared a Final Dividend of ₹60 per equity share for FY 2025-26 at their meeting held on May 26, 2026. The dividend will be paid to eligible shareholders whose names appear in the Register of Members as on the Record Date of Wednesday, August 05, 2026.

TDS Framework under Income Tax Act, 2025

Dividend paid by the company is taxable in the hands of shareholders, and the company is required to deduct tax at source at prescribed rates (plus applicable surcharge and cess). The TDS will be deducted from dividends paid in FY 2026-27.

Requirements for Shareholders

All shareholders must ensure their details are complete/updated with their Depository Participant (for demat shares) or with the company's Registrar & Share Transfer Agent (for physical shares), including:

  • Valid Permanent Account Number (PAN)
  • Residential status for FY 2026-27 (Resident or Non-Resident)
  • Category of account as per PAN
  • Email/postal address
  • Bank details

TDS Procedures for Resident Shareholders

  • Standard TDS Rate: 10% where valid PAN is registered (Section 393)
  • Higher TDS Rate: 20% where PAN is not registered/valid (Section 397)
  • TDS Exemption Cases:
  • Individual shareholders receiving total dividend ≤ ₹10,000 during FY 2026-27
  • Shareholders submitting duly signed Form 121 (replacing erstwhile Form 15G/15H) with self-attested PAN card linked with Aadhar
  • Form 121 must be submitted on or before August 05, 2026, through:
  • Depositories (NSDL or CDSL) for demat shareholders
  • Electronic portal: https://easydividend.nexdigm.com/Shareholders/
  • Email to dividend.india@bayer.com if electronic submission fails

Special Categories of Resident Non-Individual Shareholders

  • Insurance Companies: Self-declaration of beneficial interest + self-attested PAN
  • Mutual Funds: Self-declaration as specified in Section 393 + self-attested PAN + registration certificate
  • Alternative Investment Funds (AIF): Self-declaration of exempt income under Schedule V + SEBI registration as Category I/II AIF + self-attested PAN + registration certificate
  • Other exempt non-individuals: Self-attested PAN + documentary evidence of exemption

Lower/NIL TDS Certificate

Shareholders may submit certificate under Section 395 of the Act for lower/NIL withholding taxes by providing self-attested copy.

TDS Procedures for Non-Resident Shareholders

  • Standard TDS Rate: 20% (plus applicable surcharge and cess) under Section 393
  • Tax Treaty Benefits: Non-residents may opt for Double Tax Avoidance Agreement benefits by providing:
  • Self-attested PAN copy (or email, contact number, foreign tax ID, and address if no PAN)
  • Self-attested Tax Residency Certificate from country of residence for April 2026-March 2027
  • Self-declaration in Form 41 filed on income tax portal
  • Declaration of no taxable presence/permanent establishment in India (Annexure 2 format)
  • For Singapore residents: evidence demonstrating non-applicability of Article 24 of India-Singapore DTAA
  • Foreign Institutional Investors/FPIs may also claim treaty benefits with proper documentation

Documentation Deadline

All documents must be emailed to dividend.india@bayer.com on or before August 05, 2026. No communications regarding tax determination will be entertained after this date.

Final TDS Application

  • Resident Shareholders:
  • Nil TDS: With valid Form 121/declarations + self-attested PAN
  • Lower/NIL: With Section 395 certificate
  • 10%: With valid PAN
  • 20%: Without valid PAN/inoperative PAN
  • Non-Resident Shareholders:
  • Beneficial treaty rate: With complete documentation
  • Lower/NIL: With Section 395 certificate
  • 20% + surcharge + cess: In all other cases
  • Multiple Accounts: Highest tax rate based on status will apply to entire holding across different accounts

TDS Certificate Distribution

The company will email soft copies of TDS certificates to registered email addresses or send by post where email is unavailable.

Refund Process

Shareholders with valid PAN who have tax deducted at higher rates may file income tax returns to claim appropriate refunds if eligible.

Disclaimer

The communication summarizes tax provisions from a withholding perspective only, and shareholders should consult tax advisors for applicable tax provisions.

Attachments

  • Annexure 1: Form 121 for declaration for receipt of income without tax deduction
  • Annexure 2: Format for declaration by non-resident shareholders for claiming tax treaty benefits