Titan Company Limited has communicated to shareholders the tax deduction procedures applicable to the recommended dividend of Rs 15 per equity share for the financial year ended March 31, 2026. An email communication was sent explaining the process regarding tax deduction on the dividend.
The board of directors at its meeting held on May 8, 2026, recommended a dividend of Rs 15 per equity share of Rs 1 face value, representing 1500 percent. The dividend will be payable after shareholder approval at the 42nd Annual General Meeting.
Under the Income Tax Act, 2025, dividend income is taxable in the hands of shareholders. Titan Company Limited will deduct tax at source at the time of dividend payment based on applicable rates for each shareholder category.
Resident individual shareholders with valid PAN are subject to a 10 percent TDS rate. Shareholders receiving total dividend up to Rs 10,000 during the tax year are exempt from TDS. Those without a valid PAN or with PAN not linked to Aadhaar face a higher 20 percent TDS rate.
Non-resident shareholders are subject to a 20 percent TDS rate under domestic tax law. Such shareholders may claim benefits under Double Tax Avoidance Agreements by submitting a Tax Residence Certificate and Form 41. Global Depository Receipt holders are subject to a 10 percent TDS rate.
Shareholders must submit relevant documents by June 29, 2026, to ensure correct tax deduction. The dividend payment will be made only through electronic mode to bank accounts linked with demat accounts or physical folios.
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.