Voltas Limited informed shareholders about the deduction of tax on dividend for the financial year 2024-25, following the abolition of Dividend Distribution Tax (DDT) effective from 1st April, 2020.
The Board of Directors, in their meeting held on 7th May, 2025, recommended a dividend of ₹ 7.00 per Equity Share of Re. 1/- each (700%) for the financial year ended 31st March, 2025, subject to shareholder approval at the 71st Annual General Meeting (AGM) on 8th July, 2025.
Tax will be deducted at source (TDS) at the time of dividend payment, with rates varying based on the residential status of shareholders and documents submitted.
Resident shareholders with valid PAN registered with Depositories or Company's RTA will face a TDS rate of 10%, while those without PAN or with inoperative PAN due to Aadhaar non-linkage will face a 20% TDS rate.
No tax will be deducted for resident individual shareholders if the total dividend to be paid in FY 2025-26 does not exceed ₹ 10,000 or if they provide Form 15G/15H, subject to eligibility.
Non-resident shareholders, including FIIs/FPIs, will be subject to a 20% TDS rate plus applicable surcharge and cess, or the Tax Treaty Rate, whichever is lower, provided they submit required documents like PAN, Tax Residency Certificate (TRC), Form 10F, and a declaration of no Permanent Establishment in India and beneficial ownership.
Shareholders must submit required tax-related documents by 20th June, 2025, to enable the Company to determine the appropriate TDS/withholding tax rate.
Shareholders are requested to update their bank account details to ensure timely credit of dividend. Physical shareholders must update PAN and KYC details to receive dividends electronically.
Contact information for Voltas Limited and MUFG Intime India Private Limited (RTA) is provided for further assistance.