Hinduja Global Solutions Dividend TDS Procedures Communication

The Board of Directors declared a Final Dividend of ₹5 per fully paid-up Equity Share (face value ₹10 each) representing 50% per equity share.
Dividend declared for Financial Year 2025-26 at meeting held on June 04, 2026.
Record Date: September 18, 2026
Payment will be made to shareholders whose names appear in the Register of Members/BENPOS on the Record Date.

Dividend income is taxable in the hands of shareholders, requiring the company to deduct TDS at prescribed rates.

Standard TDS rate: 10% under Section 393(1) read with Section 393(4) of ITA 2025
Higher rate of 20% applies if PAN is not available, invalid, or inoperative (Section 397 or Section 262(9))
No TDS if total dividend during financial year does not exceed ₹10,000 for resident individual shareholders
Form 121 (corresponding to Form 15G/15H) can be submitted for nil deduction if eligibility conditions met

Mutual Funds: Submit SEBI registration certificate, PAN, and declaration of being notified under Schedule VII
Insurance Companies: Provide IRDAI registration certificate and PAN
Government entities, RBI, tax-exempt corporations: Documentary evidence under Section 393(5)
Alternative Investment Funds (Category I & II): Self-declaration of exemption under Schedule V (Table S. No. 1)

Standard withholding rate: 20% plus applicable surcharge and cess under Section 393(2) (Table S. No. 17)
Option to claim beneficial Double Tax Avoidance Agreement (DTAA) rates subject to documentation:
Tax Residency Certificate (TRC) for the financial year
Electronically filed Form 41 (corresponding to Form 10F)
Valid Indian PAN (if any)
Comprehensive self-declaration covering tax residency, beneficial ownership, absence of permanent establishment in India, and economic substance in home country
Foreign Institutional Investors/Foreign Portfolio Investors: Tax deducted under Section 196D @ 20% plus surcharge/cess or DTAA rate
Company explicitly states it is not obligated to apply beneficial DTAA rates and will depend on completeness of documentation review

Shareholders with lower/NIL withholding certificate under Section 395: Rate as per certificate
Tax residents of Notified Jurisdictional Area (Section 176): 30% rate
Sovereign Wealth Funds, Pension Funds: Nil rate upon providing evidence of eligibility under Schedule V (Table S. No. 7)

All required documents must be submitted to KFin Technologies Limited (RTA) on or before September 10, 2026
Documents must be uploaded at: https://ris.kfintech.com/form15/forms.aspx
Failure to submit documents by deadline will result in application of higher withholding rates
Documents submitted after deadline will be recorded for subsequent dividends during the year

Rule 203 of Income Tax Rules, 2026 (corresponding to Rule 37BA): Entities holding shares on behalf of others must furnish declarations with beneficiary details
For multiple accounts under single PAN: Highest applicable tax rate will be applied to entire holding
Joint shareholding: Tax rates determined based on status of primary beneficial shareholder
Company will rely on RTA data as updated up to Record Date for T deduction
Shareholders deducted at higher rates may claim refunds via income tax returns

SEBI Master Circular HO/38/13/(4)2026-MIRSD-POD/I/4298/2026 dated February 06, 2026 (consolidating circulars from November 2021 to June 2024)
Physical shareholders without updated KYC details (PAN, contact details, mobile number, bank account details, signature) face dividend withholding
Dividend will be released only after KYC compliance achieved
Required forms for physical shareholders:
Form ISR-1 for KYC updation
Form ISR-2 with banker attestation and bank proof
Form SH-13 for nomination
Form ISR-3 for nomination opt-out
Documents can be submitted via: hard copies (self-attested), email (digitally signed), or RTA web portal
Dematerialized shareholders must update details with their Depository Participants

The communication is available on company website: www.hgs.com