Voltas: Dividend Tax Deduction Communication to Shareholders
Voltas Ltd. has communicated to its shareholders regarding the deduction of tax on dividend as per the Income Tax Act, 2025. The communication, sent on May 26, 2026, explains the tax implications on dividend income and the necessary formalities for shareholders. The Board of Directors recommended a dividend of ₹4 per equity share (400%) for the financial year ended March 31, 2026, subject to shareholder approval at the AGM on June 30, 2026. The company is required to deduct tax at source (TDS) at applicable rates, varying based on the residential status of shareholders and submitted documents. Resident shareholders with valid PANs will face a 10% TDS rate, while those without PAN or with inoperative PANs will face a 20% rate.
Key Highlights
- Voltas informs shareholders about tax deduction on dividend income as per Income Tax Act, 2025.
- A dividend of ₹4 per share (400%) was recommended for FY26, pending shareholder approval.
- TDS rates vary based on residency and PAN status, with 10% for valid PAN holders and 20% otherwise.
- No TDS for resident individuals if total dividend is below ₹10,000 or Form 121 is provided.
- Certain shareholder categories like Mutual Funds and Government entities may have nil TDS.
Price Impact
More from VOLTAS