Titan Company Limited has communicated detailed procedures regarding tax deduction at source (TDS) on the proposed dividend for financial year 2025-26.

Dividend Recommendation

The Board of Directors at its meeting held on 8th May 2026 recommended a dividend of ₹15.00 per equity share of ₹1 each (1500%) for the financial year ended 31st March 2026. This dividend is subject to approval by shareholders at the ensuing 42nd Annual General Meeting.

Tax Applicability

Pursuant 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 making dividend payments, if approved at the AGM.

Resident Shareholder TDS Provisions

For Resident Individuals with valid PAN:

  • 10% TDS rate applies
  • No tax deduction if total dividend during tax year 2026-27 does not exceed ₹10,000
  • Alternatively, shareholders can submit Form 121-Part A to claim exemption
  • Form 121-Part A can be submitted electronically through CDSL or NSDL platforms

For Resident Non-Individuals:

  • Various exemption categories with specific documentation requirements:
  • Insurance Companies: Self-declaration, PAN copy, IRDA registration certificate
  • Mutual Funds: Self-declaration, PAN copy, SEBI registration certificate
  • Alternative Investment Funds: Self-declaration, PAN copy, SEBI AIF registration
  • NPS Trust: Self-declaration, PAN copy
  • Other non-individuals: Documentary evidence supporting exemption with PAN copy

Non-Resident Shareholder TDS Provisions

General Non-Residents:

  • 20% TDS rate (plus applicable surcharge and cess) under domestic tax law
  • Option to avail DTAA benefits if more beneficial
  • Required documents: Tax Residence Certificate, Form 41 filed online, self-declaration of treaty eligibility, SEBI registration (for FIIs/FPIs), PAN copy
  • For Singapore residents: Additional evidence demonstrating non-applicability of Article 24 limitation

Global Depository Receipt (GDR) Holders:

  • 10% TDS rate if PAN details provided
  • 20% TDS rate if no PAN details available

Additional Provisions

  • Declaration under Rule 203 required if dividend income assessable in hands of person other than deductee
  • For shareholders with multiple accounts under different status categories with single PAN, higher applicable tax rate will be considered on entire holding

Submission Deadline

All required tax documents must be submitted on or before Monday, 29th June 2026. Documents submitted after this date will be accepted at the sole discretion of the Company.

Document Submission Methods

  • Online portal: https://web.in.mpms.mufg.com/formsreg/submission
  • Email for Resident Shareholders: csgexemptforms2627@in.mpms.mufg.com
  • Email for Non-Resident Shareholders: incometaxhelpdesk@titan.co.in

Payment Method

The dividend, once approved, will be paid in electronic mode only after deducting applicable TDS.

Bank Account Updates

Shareholders must ensure their bank account details are updated and KYC compliant in their demat accounts/physical folios to enable direct credit of dividend. SEBI has mandated electronic payment mode for all shareholders, including physical shareholders who must furnish PAN, contact details, bank account details, and specimen signature.

Enclosures

  • Annexure 1: Form 121-Part A
  • Annexure 2: Declaration regarding Category and Beneficial Ownership of shares
  • Annexure 3: Declaration regarding Tax Residency and Beneficial Ownership of shares

Disclaimer

The communication is not to be treated as advice from the Company, its affiliates, or its Registrar & Transfer Agent.