Tata Power Company Limited announced on 21 May 2025 that its Board of Directors, in a meeting held on 14 May 2025, recommended a dividend of ₹2.25 per Equity Share of ₹1 each (225%) for the financial year ended 31 March 2025. This recommendation is subject to shareholder approval at the forthcoming Annual General Meeting (AGM).
Key dates related to the dividend payment are:
- AGM date: Friday, 4 July 2025
- Record date: Friday, 20 June 2025
- Dividend payout date: Monday, 7 July 2025
- Last date to submit tax related documents: Thursday, 19 June 2025
Following the abolition of dividend distribution tax by the Finance Act, 2020, dividend income is now taxable in the hands of shareholders. The company will deduct tax at source (TDS) at the time of dividend payment.
Details on tax deduction at source (TDS):
- For Resident Shareholders:
- TDS will be at 10% if a valid Permanent Account Number (PAN) is registered. If PAN is not available, invalid, or not linked with Aadhaar, TDS will be 20% under Section 206AA of the Income Tax Act.
- No tax deduction for resident individuals if the total dividend amount for FY 2025-26 does not exceed ₹10,000, or if they provide Form 15G (for individuals) / Form 15H (for senior citizens) and meet eligibility conditions. Form 15G/15H is required only if shareholding exceeds 4,444 shares, as dividend is ₹2.25 per share.
- Exemptions apply to certain resident entities like Insurance Companies, Mutual Funds, Alternative Investment Funds (AIFs), and NPS Trusts upon submission of required declarations and documents.
- Lower/NIL TDS rates apply if a certificate under Section 197 of the Act is provided.
- For Non-Resident Shareholders:
- Taxes will be withheld at 20% (plus applicable surcharge and cess) as per domestic tax law.
- Shareholders can avail beneficial rates under Double Tax Avoidance Agreements (DTAA) by submitting a self-attested copy of PAN card, Tax Residency Certificate (TRC) for FY 2025-26, Form 10F (electronic mode), Non-Resident Tax Declaration, and SEBI registration certificate for FII/FPIs.
- The company is not obligated to apply beneficial DTAA rates and depends on completeness and satisfactory review of submitted documents.
- For Global Depositary Receipt (GDR) Holders:
- Taxes will be withheld at 10% plus applicable surcharge and cess if PAN is provided, otherwise 20% plus applicable surcharge and cess.
Shareholders holding shares in physical form must update their PAN, contact details, bank account details, and specimen signature as per SEBI Master Circulars. Non-compliant folios will receive dividend payments only through electronic mode upon updation of details.
Tax-related documents, such as Form 15G/15H and other declarations, must be uploaded on the specified link (https://web.in.mpms.mufg.com/formsreg/submission-of-form-15g-15h.html) or sent to designated email addresses (Resident Shareholders: Csg2exemptforms2526@in.mpms.mufg.com; Non-Resident Shareholders: dividend@tatapower.com) on or before Thursday, 19 June 2025. Documents submitted after this cut-off period may not be considered.
Shareholders who face higher tax deduction can claim a refund by filing their income tax return. Tax credit can be viewed in Form 26AS on the TRACES or e-filing website of the Income Tax Department of India.