AstraZeneca Pharma India has issued a communication to its shareholders regarding the deduction of tax at source (TDS) on the final dividend for the financial year 2025-26. The company has provided detailed guidance on the applicable rates and required documentation for both resident and non-resident shareholders. Shareholders are urged to update their details and submit necessary forms by July 31, 2026, to ensure correct TDS application.
Dividend Tax Deducted at Source (TDS) for FY 2025-26
AstraZeneca Pharma India Limited has informed its shareholders about the deduction of tax at source (TDS) applicable to the final dividend recommended for the financial year 2025-26. This communication follows the Board of Directors’ recommendation at their meeting on May 26, 2026, and is subject to shareholder approval at the 47th Annual General Meeting scheduled for August 10, 2026. The record date for determining dividend entitlement has been fixed as July 31, 2026.
TDS Rates and Documentation for Resident Shareholders
For resident individual shareholders, tax will not be deducted at source if the total dividend amount for FY 2026-27 does not exceed INR 10,000/-. For amounts exceeding this threshold, or for other resident categories, TDS will apply as follows:
- Shareholders with PAN: 10% TDS. Required documents include updated PAN and residential status with Depositories or the Company’s Registrar and Transfer Agent (RTA).
- Shareholders without PAN/Invalid PAN: 20% TDS. Form 121 (erstwhile 15G and 15H) and a self-attested copy of PAN are required, provided eligibility conditions are met.
- Shareholders submitting Order under Section 395(1) of the Act: Rate provided in the Order. A lower/NIL withholding tax certificate from the tax authority along with a self-attested PAN copy is needed.
- Other Shareholders (e.g., LIC, GIC): NIL TDS if not applicable under section 393(1) of the Act, provided they submit a self-attested copy of PAN and registration certificate.
- Alternative Investment Funds (AIFs): NIL TDS. A self-declaration stating income exemption under section 11 [schedule V] of the Act and compliance with SEBI regulations, along with relevant registration documents and PAN, is required.
- Shareholders covered under Section 393(5) (e.g., Mutual Funds, Govt.): NIL TDS. A certificate of registration under Schedule VII, a self-attested PAN copy, and documentary evidence are necessary.
Resident individual shareholders are strongly advised to ensure their Aadhaar number is linked with their PAN; otherwise, their PAN will be considered inoperative, and a 20% TDS will apply.
TDS Rates and Documentation for Non-Resident Shareholders
Non-resident shareholders have the option to be governed by the Double Tax Avoidance Treaty (DTAA) between India and their country of tax residence if it is more beneficial. Required documents and rates are:
- Foreign Institutional Investors (FIIs)/ Foreign Portfolio Investors (FPIs): 20% (plus applicable surcharge and cess) OR the Tax Treaty Rate (whichever is lower). Documents include FII/FPI registration, PAN, Tax Residency Certificate (TRC) valid on August 2026, and self-declarations regarding Form 41, no Permanent Establishment in India, and beneficial ownership.
- Other Non-resident Shareholders: 20% (plus applicable surcharge and cess) OR the Tax Treaty Rate (whichever is lower). Documents include PAN, TRC valid on August 2026, and similar self-declarations as above.
- Shareholders submitting Order under Section 395(1) of the Act: Lower/NIL withholding tax certificate obtained from the tax authority.
In cases where PAN is not available for non-resident shareholders (excluding companies), specific details like name, email ID, contact number, address, and Tax Identification Number of the residency country are mandatory.
Important Dates and General Instructions
Shareholders are requested to submit all required forms and documents by July 31, 2026, 17:00 hrs IST, via the RTA’s weblink (https://ipostatus.integratedregistry.in/TaxExemptionRegistration.aspx) to enable the Company to determine the correct TDS/withholding tax rate. Submissions made after this deadline or to any other portal will not be considered.
The company emphasizes that the above communication provides a summary of tax provisions and shareholders should consult their tax advisors for detailed understanding. Residential status will be considered as per data available with the Company/RTA/Depository Participants as of the record date. Any changes in status must be updated before July 31, 2026.
For shareholders holding multiple accounts under different status/category with a single PAN, the higher tax rate applicable to any of their holdings will be considered for the entire holding. Shareholders are also reminded to update their details (PAN, nomination, contact, bank account, residential status) with their Depository Participant (DP) for timely receipt of communications and benefits.
Source: BSE
