Procter & Gamble Hygiene and Health Care Limited announced a final dividend of Rs. 60 per equity share for FY 2025-26. The company also provided detailed information regarding Tax Deducted at Source (TDS) on dividend income for both resident and non-resident shareholders. Shareholders are urged to submit necessary documentation, including PAN and tax residency certificates, by August 14, 2026, to ensure correct TDS application and avoid higher withholding rates.
Dividend Declaration
The Board of Directors of Procter & Gamble Hygiene and Health Care Limited has declared a final dividend of Rs. 60 per equity share (face value Rs. 10 each) for the Financial Year 2025-26. This dividend is subject to the approval of the shareholders at the ensuing Annual General Meeting. The dividend will be paid to shareholders whose names appear in the Register of Members or depositories on the specified Record Date.
Tax Deducted at Source (TDS) on Dividend Income
As per the Income Tax Act, 2025, dividend declared and paid after April 1, 2020, is taxable in the hands of shareholders. The Company is mandated to deduct tax at source (TDS) on dividend distribution at applicable rates.
Resident Shareholders
For resident shareholders, TDS is applicable as follows:
- Total dividend not exceeding INR 10,000 for FY 2026-27: Nil TDS, provided a duly signed Form 121 is furnished and meets eligibility conditions. The new Form 121 requires details of income tax returns filed for the previous two tax years.
- PAN is available: 10% TDS. Shareholders are requested to update their PAN with depositories.
- PAN is not available/invalid: 20% TDS. Even if Form 121 is provided, TDS will be deducted in case of invalid or inoperative PAN.
- Life Insurance Corporations (LIC), General Insurance Companies (GIC), etc.: Nil TDS, as per Section 194 of the Act, provided shares are owned by them with full beneficial interest. A self-attested copy of valid IRDAI registration certificate is required.
- Persons Covered under Section 393 of the Act (e.g., Mutual Funds, Govt.): Nil TDS. A self-attested copy of valid SEBI registration certificate or equivalent evidence is required.
- Submitting Order u/s 395 (lower/NIL withholding tax certificate): Rate as provided in the Order. A lower/NIL withholding tax certificate obtained from the tax authority is necessary.
- Category I and II Alternative Investment Fund: Nil TDS, subject to specified conditions. A self-attested copy of valid SEBI registration certificate is required.
Non-Resident Shareholders
For non-resident shareholders, including FII/FPI:
- Applicable Rate: 20% (plus applicable surcharge and cess), OR the DTAA Rate (whichever is lower).
- Documents required to avail DTAA benefit:
- Self-attested copy of Indian Permanent Account Number (PAN) card (or substitute).
- Self-attested copy of Tax Residency Certificate from home country’s tax authority.
- Copy of Form 41 filed electronically on the Indian Income Tax Portal.
- Self-declaration confirming tax residency, eligibility for DTAA benefits, and that dividend income is not attributable to a Permanent Establishment (PE) or Fixed Base in India.
- Submitting Order u/s 395 (lower or NIL withholding tax certificate): Rate as provided in the Order.
Note: The Company is not obligated to apply beneficial DTAA rates automatically; it depends on the completeness and satisfactory review of submitted documents.
Important Dates and Instructions
- Shareholders are requested to submit all required forms and documents for the Financial Year 2026-27 by August 14, 2026.
- Submissions should be made on RTA’s website (https://web.in.mpms.mufg.com/formsreg/submission-of-Form-121-41.html) or via email to [email protected].
- Incomplete, unsigned forms, or submissions received after August 14, 2026 (5 pm) will not be considered.
- Shareholders are responsible for providing accurate information. Any misrepresentation may lead to indemnification of the Company.
- A soft copy of the TDS certificate will be emailed to registered email IDs. Shareholders can also view TDS credit in Form 168 on the e-filing account (https://incometaxindiaefiling.gov.in).
- For shares held in physical mode, provide Folio No., Name, scanned share certificate, PAN, and Aadhaar.
- For shares held in demat mode, provide DPID-CLID, Name, client master/consolidated statement, PAN, and Aadhaar to your DP.
- Shareholders are also requested to update their bank details with their DPs (for demat holdings) or RTA (for physical holdings) for electronic remittance of dividends.
TDS Rate for Taxpayers in Specified Cases
Failure to link PAN with Aadhaar may result in the PAN being deemed invalid/inoperative, leading to withholding taxes at a higher rate, potentially 20% or the applicable statutory rate, whichever is higher, as per Section 262 of the Income Tax Act.
Declaration under Rule 203
If dividend income on which TDS has been deducted is assessable in the hands of a person other than the deductee, a declaration must be filed with the Company by August 14, 2026.
General Instructions
Shareholders exempted from TDS provisions must provide documentary evidence. For any further clarification, shareholders can contact [email protected] or [email protected]. This communication is not a tax advice, and shareholders should consult a tax professional.
Source: BSE
