IndusInd Bank Limited has announced the issuance of a communication regarding Tax Deduction at Source (TDS) on dividend distribution for the financial year 2026-27. The bank released the detailed TDS guidelines on June 30, 2026, providing information to shareholders on tax compliance requirements.
The Board of Directors recommended a Final Dividend of Rs 1.50 per equity share of face value Rs 10 each for the financial year ended March 31, 2026, subject to shareholder approval at the ensuing Annual General Meeting scheduled for August 2026. The dividend payment will be processed for shares held as on the record date of June 26, 2026.
For resident individual shareholders, TDS will apply at 10% on dividend amounts unless the aggregate dividend received during the financial year does not exceed Rs 10,000 or if valid Form 121 (under 60 years) or Form 121 (60 years and above) is submitted with PAN card copy. Insurance companies, mutual funds, AIFs, NPS trusts, and other eligible shareholders can claim nil or lower tax rates with appropriate declarations.
Non-resident shareholders will face TDS at 20% plus applicable surcharge and cess, with DTAA benefits available through submission of tax residency certificates and Form 41. Sovereign wealth funds, pension funds, and ADIA subsidiaries qualify for nil tax rates under Schedule V(7) of the Income Tax Act.
Shareholders must upload Form 121 and other tax exemption declarations with MUFG Intime India Private Limited by July 6, 2026, to ensure appropriate TDS application. The communication emphasizes that failure to submit required documents may result in higher rate deductions, with excess tax refundable through income tax returns.
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.