Voltas Limited has communicated to shareholders regarding tax deduction at source (TDS) procedures for the upcoming dividend payment for financial year 2025-26.

The Board of Directors, at their meeting held on 14th May 2026, recommended a dividend of ₹4 per equity share of ₹1 each (400%) for the financial year ended 31st March 2026. This dividend payment is subject to approval by shareholders at the 72nd Annual General Meeting scheduled to be held on 30th June 2026.

Pursuant to the Income-tax Act, 2025, dividend income is taxable in the hands of shareholders, and the company is required to deduct tax at source at the time of making dividend payments. The applicable TDS rates vary depending on the residential status of shareholders and documents submitted.

Resident Shareholders

  • Tax deducted at 10% where shareholders have registered valid PAN with depositories/RTA/company
  • Tax deducted at 20% for cases without PAN, invalid PAN, or unlinked Aadhaar-PAN
  • Resident individual shareholders exempt from TDS if total dividend for tax year 2026-27 does not exceed ₹10,000 at PAN level
  • Resident individuals can submit Form 121 for nil TDS deduction subject to eligibility conditions
  • Specific categories of resident non-individual shareholders (LIC, GIC, insurers, business trusts, Alternative Investment Funds, Mutual Funds, Government, NPS Trust, and entities unconditionally exempt under Section 11) may qualify for nil TDS rates upon submitting required documentation including self-declarations, registration certificates, and PAN cards

Non-Resident Shareholders

  • Tax deducted at 20% plus applicable surcharge and cess OR applicable Tax Treaty rate (whichever is lower)
  • Required documents include: PAN card (or declaration under rule 217 if PAN not available), valid Tax Residency Certificate for tax year 2026-27, electronically submitted Form 41 for tax year 2026-27, and declaration of no Permanent Establishment in India and beneficial ownership
  • Company reserves discretion to apply beneficial treaty rates based on completeness of documents submitted

Submission Requirements

  • Resident shareholders must submit documents (Form 121, Section 393/395 documents) via online portal (https://web.in.mpms.mufg.com/formsreg/submission-of-Form-121-41.html) or email to Csgexemptforms2526@in.mpms.mufg.com
  • Non-resident shareholders must submit documents via email to direct_tax@voltas.com
  • All documents must be received by 12th June 2026 for appropriate TDS rate determination
  • No communications regarding tax determination/deduction will be entertained after 12th June 2026

Additional Information

  • Shareholders with multiple accounts under different categories will have the higher tax rate applied to their entire holding
  • Shareholders may claim refunds for excess TDS deducted through their income tax returns if eligible
  • TDS credit will be available in Form 168 (Annual Information Statement) for shareholders with registered PAN
  • Shareholders are responsible for indemnifying the company against any income tax demands arising from misrepresentation or omission of information
  • Shareholders holding demat shares must ensure updated bank account details in their demat accounts
  • Physical shareholders must ensure folio KYC compliance for dividend release