Timken India Limited communicated detailed procedures for tax deduction at source (TDS) on the dividend recommended for the financial year ended 31 March, 2026.

Dividend Recommendation

The Board of Directors has recommended a dividend of ₹2.50 per equity share of ₹10 each fully paid up, subject to approval by members at the 39th Annual General Meeting.

TDS Framework

The dividend will be taxable in the hands of shareholders under the Income Tax Act, 2025, and the company is required to deduct tax at source at applicable rates.

Resident Shareholders - Individuals

  • TDS will be deducted at 10% under Section 393(1) if a valid PAN is provided
  • TDS will be 20% under Section 397(2) if PAN is not submitted or invalid
  • No TDS if aggregate dividend during Tax Year 2026-27 does not exceed ₹10,000
  • Exemption available with written declaration in prescribed Form 121

Resident Shareholders - Other than Individuals

Specific categories may qualify for Nil TDS rate under Section 393(4), Table: Sl. No. 10 upon submitting documentary evidence:

  • Insurance companies: Declaration of beneficial ownership, PAN, and IRDAI registration
  • Mutual Funds: Self-declaration under Schedule VII (Table Sl No 20 or 21) with PAN and registration
  • Alternative Investment Funds: Self-declaration of exemption under Schedule V (Sl. No 1) with PAN and SEBI registration
  • Corporations exempt from income-tax: Self-declaration specifying Central Act with PAN and registration
  • Other exempt entities: Self-declaration with supporting documents

Non-resident Shareholders or Foreign Companies

  • Standard withholding tax rate of 20% plus applicable surcharge and cess under Section 393(2)
  • Option to avail beneficial Double Tax Avoidance Agreement (DTAA) rates if more favorable
  • Requirements for DTAA benefits: PAN details, tax residency certificate, Form 41, declaration of no Permanent Establishment in India
  • Foreign Institutional Investors additionally require SEBI registration certificate

Lower Withholding Certificate

Shareholders may provide certificate under Section 395 of the Act for lower/NIL withholding of taxes.

Important Deadlines and Procedures

  • All tax-related documents must be submitted to RTA by end of 8 August, 2026
  • No communications on tax determination will be entertained after this date
  • Shareholders with physical shares must update PAN details with RTA
  • For shares held by clearing members/brokers on behalf of beneficial owners, declaration containing actual beneficial owner details must be furnished by Record Date
  • Documents can be sent to TIL.TDS@timken.com
  • Incomplete/unsigned forms will not be considered

Additional Information

  • Shareholders must ensure bank account details are updated in demat accounts/physical folios
  • The company will not entertain requests for revision of TDS return after deduction
  • Shareholders may claim refunds while filing income tax returns if eligible
  • This communication is not to be treated as advice from the Company or its Registrar & Transfer Agent