TDS on Dividends
RESIDENT SHAREHOLDERS
i) Tax Deductible at Source for resident shareholders
| Sr. No. | Particulars | Rate of Deduction of Tax at Source | Documents Required (if any) |
| 1 | Valid PAN updated in the Company’s Register of Members | 10% | No document is required (if no exemption is sought) |
| 2 | No PAN/Valid PAN not updated in the Company’s Register of Members/PAN not linked with Aadhaar | 20% | No document is required (if no exemption is sought) |
| 3 | Availability of lower/nil tax deduction certificate issued by Income Tax Department u/s 395 of Income Tax Act, 2025 | The rate specified in the Certificate | – Copy of Pan card – Lower/nil tax deduction certificate obtained from Income Tax Authority |
ii) No Tax Deductible at Source on dividend payment to resident shareholders if the shareholders submit and register the following documents with the Company/Company’s RTA – MUFG Intime India Private Limited (previously known as Link Intime India Private Limited)
| Sr. No. | Particulars | Rate of Deduction of Tax at Source | Documents Required (if any) |
| 1. | Submission of Form No. 121 | NIL | – Copy of PAN card – Declaration in Form No. 121 .The Form can be downloaded from the Income Tax website. |
| 2. | Securitisation Trust | NIL | – A copy of the registration/ document evidencing the shareholder as a securitisation trust (as defined in clause (d) of section 221(6)). |
| 3. | Shareholders to whom section 393 of the Income Tax Act, 2025 does not apply, such as LIC, GIC, etc. | NIL | – Copy of PAN card – Documentary evidence that the said provisions are not applicable. |
| 4. | Shareholders covered under section 393 of the Income Tax Act, 2025, such as the Government, RBI, corporations established by the Central Act & mutual funds specified under section Schedule VII of the Income-tax Act, 2025. | NIL | – Copy of PAN card – Documentary evidence for coverage under section 393 of the Income Tax Act, 2025 |
| 5. | Category I and II Alternative Investment Fund | NIL | – Copy of PAN card – SEBI AIF registration certificate to claim benefit under section 400(1) read with Schedule V of the Income Tax Act, 2025 |
| 6. | · Recognised provident funds · Approved superannuation fund · Approved gratuity fund |
NIL | – Copy of PAN card – Necessary documentary evidence as per Circular No. 18/2017 issued by the Central Board of Direct Taxes (CBDT) |
| 7. | National Pension System Trust referred to in Schedule VII of the Income-tax Act, 2025 | NIL | No TDS as per section 393(9) of the Income Tax Act, 2025 |