Aster DM Healthcare announced the declaration of an interim dividend of Rs. 3/- per equity share for FY 2025-26 on March 26, 2026. This communication details the Tax Deduction at Source (TDS) provisions applicable under the Income-tax Act, 2025. Shareholders, both resident and non-resident, must submit necessary documentation by April 06, 2026, to ensure correct TDS rates are applied based on PAN validity and residency status.
Interim Dividend Declaration and Record Date
The Board of Directors of Aster DM Healthcare Limited, following its meeting on March 26, 2026, formally declared an interim dividend of Rs. 3/- per equity share for the Financial Year 2025-26. The designated record date for determining entitlement to this dividend payment is fixed as April 03, 2026.
As dividend payments are taxable in the hands of the members under the Income-tax Act, 2025, the Company is obligated to deduct Tax at Source (TDS) at the time of payment.
TDS Provisions for Resident Members
For resident shareholders, TDS is to be deducted under Section 393(1) of the Act:
- Shareholders possessing a valid Permanent Account Number (‘PAN’) will face a 10% TDS rate, or as notified by the Government. For individuals, this threshold limit applies only if the dividend exceeds INR 10,000.
- Shareholders with an invalid/inoperative PAN or PAN not linked with Aadhar are subject to a 20% TDS rate, as per section 397(2)(b)(i). Members are strongly advised to link their Aadhar with PAN to avoid this higher rate.
- Exemption (0% TDS) is available for individuals submitting a complete Form 121 (Annexure II), provided their estimated total income under the new taxation regime (Section 115BAC) is less than or equal to INR 4,00,000.
- Non-individuals claiming exemption must submit specific declarations (listed in the document, such as for Insurance companies or Mutual Funds) enclosed as Annexure III.
TDS Provisions for Non-Resident Members
For non-resident members, withholding tax under Section 393(2) is generally set at 20%, or the rate specified under the applicable Double Tax Avoidance Agreement (DTAA), read with the Multilateral Instrument (MLI), whichever is more beneficial.
To avail of DTAA benefits, non-resident members must submit extensive documentation, including:
- A copy of the PAN card allotted by Indian authorities.
- Copy of the Tax Residency Certificate (TRC) for FY 2026-27.
- Self-declarations in Form 41 and Annexure IV regarding permanent establishment and beneficial ownership.
For Foreign Institutional Investors/Foreign Portfolio Investors, tax is deducted at 20% or the beneficial DTAA rate, subject to the submission of required documentation.
Crucial Submission Deadlines and Compliance
NO COMMUNICATION/DOCUMENTS IN RESPECT OF TDS WOULD BE ACCEPTED FROM MEMBERS AFTER MONDAY, APRIL 06, 2026.
Members are also reminded of the following compliance requirements:
- Shareholders must mandatorily update their bank details (NECS) with their Depository Participants or the Registrar for timely dividend remittance.
- Forms and annexures (like Form 121 or declarations for non-residents) must be submitted to the email ID [email protected] by the deadline.
- If TDS is deducted at a higher rate due to missing documentation, members retain the option to file their income tax return to claim a refund, if eligible.
Source: BSE
