Muthoot Finance has announced an interim dividend of ₹30 per equity share for the financial year 2025-26, as declared by the Board of Directors on April 10, 2026. This dividend will be distributed to shareholders based on the details of beneficial ownership provided by the Depositories. For shares held in physical form, the dividend will be paid to members whose names appear on the Register of Members as of the close of business on April 17, 2026.
The company has also provided a detailed communication regarding the applicability of Tax Deduction at Source (TDS) on the dividend. The provisions of the new Income-tax Act, 2025, which came into effect on April 1, 2026, will govern the TDS process. The withholding tax rate will vary depending on the residential status of the shareholder and the documents submitted.
For resident shareholders, no TDS will be deducted if the total dividend does not exceed ₹10,000 during the financial year. A 10% TDS will apply to those with a valid PAN, while a 20% TDS will apply to those without a PAN or with an invalid PAN. Shareholders can submit Form 121 for exemption under certain conditions.
Non-resident shareholders will face a 20% TDS, plus applicable surcharge and cess, unless a lower tax treaty rate applies. To benefit from a tax treaty rate, non-residents must provide a Tax Residency Certificate, a copy of Form 41, and a self-declaration of eligibility.
Shareholders are advised to ensure their PAN is linked with their Aadhaar number to avoid higher TDS rates. The company has provided online submission links for necessary documents to facilitate the process.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).