The company has advised investors to update their bank account details including IFSC and KYC details with their custodian.Investors should note that the provisions of the Income Tax Act, 1961 (the IT Act), after being amended by the Finance Act, 2020, have made the dividend taxable in the hands of shareholders with effect from April 1, 2020.
The companies therefore deduct tax at source (TDS) at applicable rates on dividends paid to its shareholders.
The applicable withholding tax rate varies depending on the residence status and category of the shareholder and is subject to the submission of the required declarations/documents to the company during the period specified by the company, namely from January 27, 2026 to February 6, 2026.
Tax deduction for residents
1) Valid PAN updated with the custodian
Shareholders can contact the custodian by entering PAN/email address/mobile number before the registration date for deduction of TDS at 10% (if applicable).
There would be no tax deduction if the total dividend income paid to a resident individual member during FY26 is less than Rs 10,000.
2) No PAN / Invalid PAN / Non-working PAN: 20%
3) Availability of Lower/Zero Tax Deduction Certificate issued by the Income Tax Department u/s 197 of the IT Act:
Rate specified in Lower Tax Withholding Certificate obtained from IT department. The investors must submit a self-attested copy of the PAN card as well as a copy of a lower tax withholding certificate obtained from the IT department.
4) An individual device form 15G/15H: NIL
The investors must submit a self-attested copy of the PAN card. Declaration in Form No. 15G (applicable to a person below 60 years of age) or Form No. 15H (applicable to a person who is 60 years of age or above), satisfying the prescribed conditions.
This form can only be filed if the shareholder tax on the estimated total income for FY26 is zero.
5) Shareholders to whom Article 194 of the IT Act does not apply:
NIL. In this category are LIC, GIC, Business Trust (REIT, InVIT) etc.
6) Category I and II Alternative Investment Funds (AIF):
NIL / Category III AIF: 10%
Non-resident shareholders
Foreign Institutional Investors (FIIs): 20% (plus applicable surcharge and tax) or tax treaty rate.
AIF Category III based in IFSC: 10% (plus applicable surcharge and tax)
For sovereign wealth funds and pension funds notified by the Central Government u/s 10(23FE) of the IT Act, the tax deductions are NIL. There is no tax deduction for a wholly owned subsidiary of Abu Dhabi Investment Authority (ADIA).
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