Pidilite Industries Limited has communicated to shareholders regarding tax deduction on the recommended dividend of Rs 11.50 per equity share for the financial year ended March 31, 2026. The board of directors recommended the dividend at its meeting held on May 7, 2026. The dividend is subject to shareholder approval at the ensuing annual general meeting.
Under the Income Tax Act, 2025, dividend income is taxable in the hands of shareholders and Pidilite will deduct tax at source at the time of making the dividend payment. For resident individual shareholders with a valid PAN, tax will be deducted at 10 percent. No tax will be deducted if the total dividend amount does not exceed Rs 10,000 during the tax year 2026-27 or if the shareholder files Form 121. Resident individuals without a valid PAN will face TDS at 20 percent.
Non-resident shareholders are subject to TDS at 20 percent plus applicable surcharge and cess as per domestic tax law. Eligible non-resident shareholders may opt for beneficial rates under the Double Tax Avoidance Agreement between India and their country of tax residence. To avail DTAA benefits, shareholders must submit a Tax Residence Certificate, Form 41 filed online, and a self-declaration of meeting treaty eligibility requirements.
Shareholders must submit tax-related documents by July 10, 2026, to enable Pidilite to determine the appropriate withholding tax rate. Documents submitted after this date will be accepted at Pidilite's sole discretion. Shareholders who fail to submit required documents may face higher TDS deduction, with an option to claim a refund when filing income tax returns.
The dividend for FY 2025-26 will be paid in electronic mode only after shareholder approval. Shareholders are requested to update bank account details and KYC information with their depository participants or the registrar and transfer agent to facilitate direct credit of 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.