Home First Finance Company India Limited has issued important information regarding dividend tax deduction for its shareholders. The company announced a dividend of ₹5.20/- per equity share for FY26, subject to AGM approval on June 24, 2026. The record date is set for Friday, May 29, 2026. Shareholders are advised on the process for tax deduction and the required documentation to be submitted by June 10, 2026.
Dividend Recommendation and Record Date
Home First Finance Company India Limited’s Board of Directors has recommended a dividend of ₹5.20/- per equity share for the Financial Year ended March 31, 2026. This recommendation is subject to the approval of shareholders at the upcoming Annual General Meeting (AGM) scheduled for Wednesday, June 24, 2026. The record date for determining eligible shareholders for this dividend has been fixed as Friday, May 29, 2026.
Tax Deduction at Source (TDS) Information
The company is required to deduct tax at source (TDS) on dividend payments. The TDS rate will vary based on the shareholder’s residential status and compliance with Income Tax Act provisions. Shareholders wishing to claim tax deduction are required to submit necessary documents by Wednesday, June 10, 2026.
Resident Shareholders
For resident shareholders:
- Individuals: No tax will be deducted if the total dividend received does not exceed ₹10,000/- in the Tax Year (FY) 2026-27. For amounts exceeding this limit, or if Form 121 is not provided or eligible, tax will be deducted at a higher rate.
- Non-Individuals: Specific documentation is required for entities like Insurance Companies, Mutual Funds, Alternative Investment Funds, and NPS Trusts to avail exemption from tax deduction.
Non-Resident Shareholders
For non-resident shareholders:
- Domestic Tax Law: A withholding tax of 20% (plus applicable surcharge and cess) will be applied.
- Double Tax Avoidance Agreement (DTAA): Non-resident shareholders can opt for beneficial DTAA rates by submitting relevant documents such as a PAN card, Tax Residency Certificate (TRC), and a self-declaration by Wednesday, June 10, 2026.
Submission of Documents
Shareholders are requested to submit tax-related documents, including Form 121 or documents under Section 395(1), via the online portal https://ris.kfintech.com/form15/forms.aspx?q=0 on or before Wednesday, June 10, 2026. Documents submitted after this deadline may not be considered. Other communications can be sent to [email protected].
PAN-Aadhaar Linking
As per Section 262(6) of the Income Tax Act, 2025, failure to link PAN with Aadhaar will result in the PAN being deemed invalid, and tax will be deducted at a higher rate of 20% under Section 397(2) of the Act.
Dividend Payment
The dividend, once approved at the AGM, will be paid to shareholders after deducting the applicable tax at source.
Other Important Information
- Shareholders are classified as Resident or Non-Resident based on their PAN.
- It is crucial to ensure that depository records (bank details, tax residential status, etc.) are updated to facilitate direct credit of dividends.
- Dividends will not be paid through physical instruments if bank account details are not updated.
Source: BSE
