Tata Investment Corporation has announced a dividend of ₹3.40 per equity share for the financial year ending March 31, 2026. This dividend, representing 340% of the face value of Re. 1 per share, is subject to approval at the upcoming Annual General Meeting (AGM) scheduled for July 1, 2026.
The company has outlined key dates related to this dividend declaration. The record date is set for June 10, 2026, and the dividend payout is expected on or after July 2, 2026. Shareholders are required to submit any tax-related documents by June 5, 2026, to ensure the appropriate tax deduction at source.
Under the Finance Act, 2020, dividend income is taxable in the hands of shareholders. Tata Investment Corporation will deduct tax at source in accordance with the Income-tax Act, 2025, effective from April 1, 2026. The withholding tax rate varies based on the shareholder’s residential status and the documents submitted.
For resident shareholders, tax is deducted at 10% if a valid Permanent Account Number (PAN) is registered. Without a PAN, or if the PAN is invalid or not linked with Aadhaar, the tax rate increases to 20%. Resident individuals are exempt from tax deduction if their total dividend income does not exceed ₹10,000 in the tax year 2026-27 or if they provide Form 121 or an exemption certificate from the Income-tax Department.
Non-resident shareholders are subject to a 20% tax rate, plus applicable surcharge and cess, unless they provide a certificate for lower or nil withholding tax. They may also opt for the more beneficial provisions of the Double Tax Avoidance Agreement (DTAA) between India and their country of residence by submitting the necessary documents, including a Tax Residency Certificate.
The company has advised shareholders to ensure their PAN is linked with Aadhaar to avoid a higher tax deduction rate. Additionally, shareholders with multiple accounts under different statuses or categories should note that the highest applicable tax rate will be applied to their entire holding.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).