Grasim Industries Limited has informed shareholders about tax deduction at source on dividend for FY 2026-27. The board recommended a dividend of Rs 10 per equity share of face value Rs 2 at its meeting on 20th May 2026, subject to shareholder approval at the 79th Annual General Meeting.
The dividend represents a 500% payout for the financial year ended 31st March 2026. Under the Income-tax Act, 2025, dividend income is taxable in shareholders' hands and the company must deduct TDS at applicable rates based on residential status and category.
For resident shareholders, TDS will be deducted at 10% under Section 393(1) read with Section 393(4) unless the aggregate dividend during FY 2026-27 does not exceed Rs 10,000. Eligible resident shareholders can submit Form 121 for nil or lower deduction, while specified categories including insurance companies, mutual funds, alternative investment funds, and provident funds can claim exemption with supporting documentation.
Non-resident shareholders face 20% withholding tax plus applicable surcharge and cess under Section 393(2). They may claim DTAA benefits by providing PAN, Tax Residency Certificate, Form 41, and self-declaration. Subsidiaries of Abu Dhabi Investment Authority and notified sovereign wealth funds can claim exemption with prescribed documentation.
The company will deduct TDS at 20% if PAN is not linked with Aadhaar or is invalid or inoperative, as per Section 397. The communication has been sent to shareholders with registered email addresses and is available on the company website at https://www.grasim.com/investors/tds-on-dividend.
Disclaimer: This article is based on company filings submitted to the Bombay Stock Exchange (BSE) and National Stock Exchange of India (NSE) and is for informational purposes only. It does not constitute investment advice or a recommendation. Investors should conduct their own research and consult a qualified financial advisor before making investment decisions.