Aditya Birla Lifestyle Brands Ltd: Dividend Tax Deduction Communication
Aditya Birla Lifestyle Brands Ltd has issued a communication to its shareholders regarding the deduction of tax at source (TDS) on dividends, if declared. The company plans to recommend a dividend of Rs. 0.50 per equity share and 8% on preference shares for FY 2025-26, subject to shareholder approval at the upcoming AGM. This dividend will be paid to shareholders on record as of August 7, 2026. The communication clarifies that dividend income is taxable and the company is mandated to deduct TDS as per the Income-tax Act, 2025. TDS rates will vary based on the shareholder's residential status and classification. Specific TDS rates and documentation requirements for resident shareholders are detailed, including a 10% rate with valid PAN, a 20% rate with no/invalid PAN, and nil deduction for resident individuals whose dividend income does not exceed INR 10,000 or who provide Form No. 121 under prescribed conditions.
Key Highlights
- Company to communicate TDS on proposed dividend for FY 2025-26.
- Dividend recommendation: Rs. 0.50/equity share and 8% on preference shares.
- TDS rates depend on shareholder status and PAN validity.
- Nil TDS for resident individuals with dividend income under INR 10,000.
- Shareholders must update PAN and KYC details for dividend payout.
Price Impact
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