Home First Finance Company India Limited has issued a detailed communication to shareholders regarding tax deduction procedures on the proposed dividend for FY26. This disclosure follows the company's earlier intimation dated May 6, 2026 (Reference: HFFCIL/BSE/NSE/EQ/08/2026-27) where the Board recommended a dividend of ₹5.20 per equity share of face value ₹2 each (260% of face value).

Dividend Details

The dividend recommendation is subject to approval at the Annual General Meeting (AGM) scheduled for Wednesday, June 24, 2026. The company has set Friday, May 29, 2026 as the record date for determining shareholder eligibility.

Tax Deduction at Source (TDS) Requirements

The communication elaborates on TDS provisions under the Income Tax Act, 2025:

For Resident Shareholders:

  • TDS rate of 10% applies where valid PAN is registered
  • TDS rate of 20% applies for invalid PAN, non-linked PAN with Aadhaar, or no PAN
  • No TDS for resident individuals if total dividend during FY 2026-27 does not exceed ₹10,000
  • Exemption available through submission of Form 121 for eligible individuals
  • Specific exemptions for insurance companies, mutual funds, AIFs, and NPS Trust with proper documentation

For Non-Resident Shareholders:

  • Default withholding tax rate of 20% plus applicable surcharge and cess
  • Option to claim beneficial rates under Double Tax Avoidance Agreements (DTAA) by submitting:
  • Self-attested PAN copy
  • Tax Residency Certificate (April 1, 2026 to March 31, 2027)
  • Digital Form 41
  • Treaty eligibility declaration (Annexure 3)
  • SEBI registration certificate for FIIs/FPIs

Submission Deadline

Shareholders must submit all required tax documents by Wednesday, June 10, 2026 through the designated portal: https://ris.kfintech.com/form15/forms.aspx?q=0 or email: einward.ris@kfintech.com. Documents received after this date will be accepted at the company's sole discretion.

Additional Provisions

  • Higher TDS rate applies for non-linkage of PAN with Aadhaar as per Section 262(6)
  • Declaration under Rule 203 required if dividend income assessable in hands of person other than deductee
  • For multiple accounts under single PAN, highest applicable tax rate will be applied to entire holding
  • Dividend will be paid electronically only to shareholders with updated bank details

Communication Details

The company sent this communication to all shareholders with registered email IDs on Monday, June 1, 2026. The document references SEBI (LODR) Regulations, 2015 amendments effective from November 19, 2025 regarding dividend payment procedures.