Tata Capital Informs Shareholders on Dividend TDS
Tata Capital Limited has issued a communication to its shareholders regarding Tax Deduction at Source (TDS) on dividends. The company clarified that dividend income is taxable and TDS will be applicable as per the Income Tax Act, 2025. For resident shareholders with PAN, TDS is 10% on dividend amount, increasing to 20% if PAN is not registered. Resident individuals receiving up to ₹10,000 in dividends are exempt if they provide Form 121 and meet conditions. Specific documentation is required for resident non-individuals like insurance companies, mutual funds, AIFs, and NPS trusts to claim exemptions. The communication also emphasizes the mandatory linking of PAN with Aadhaar to avoid higher TDS rates.
Key Highlights
- TDS applicable on dividend income as per Income Tax Act, 2025.
- Resident shareholders with PAN face 10% TDS; 20% if PAN is invalid/missing.
- Resident individuals with dividends <= ₹10,000 may be exempt with Form 121.
- Specific documents needed for exemptions for resident non-individuals.
- PAN-Aadhaar linking is mandatory to avoid higher TDS rates.
Price Impact
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