PNB Housing Finance Limited has issued a communication to its shareholders regarding the Tax Deduction at Source (TDS) on the final dividend recommended for the Financial Year 2025-26. The dividend is subject to shareholder approval at the Annual General Meeting on August 17, 2026. The document outlines the applicable TDS rates, processes, and necessary self-certified documents for both resident and non-resident shareholders to avail exemptions or applicable rates.
PNB Housing Finance Outlines Dividend TDS Procedures for FY 2025-26
PNB Housing Finance Limited has released a detailed communication to its shareholders concerning the Tax Deduction at Source (TDS) applicable to the final dividend recommended for the financial year ended March 31, 2026. The recommended dividend of Rs. 8/- per equity share is contingent upon the approval of the shareholders at the upcoming Annual General Meeting (AGM) scheduled for August 17, 2026.
Dividend Taxation and Deductions
As per the Income-tax Act, dividend income is taxable in the hands of shareholders. The company is mandated to deduct tax at source (TDS) at applicable rates before disbursing the dividend. This communication aims to explain the TDS provisions, the process of withholding tax, and the relevant annexures required by shareholders.
Resident Shareholders
For resident shareholders, TDS will be applied at 10% if a valid Permanent Account Number (PAN) is registered. If PAN is not provided, invalid, or not linked with Aadhaar, a TDS rate of 20% will apply. Notably, for resident individuals, TDS will not be deducted if the aggregate dividend received does not exceed Rs. 10,000 for the Tax Year (TY) 2026-27. Exemption is also possible upon submission of Form 121, provided eligibility conditions are met, or if an exemption certificate from the Income-tax Department is furnished.
Different categories of resident shareholders, such as Insurance Companies, Mutual Funds, and Alternative Investment Funds, are subject to specific documentation requirements for nil or reduced TDS rates. These include self-declarations and documentary evidence of their category and exemption status.
Non-Resident Shareholders
Non-resident shareholders are subject to TDS as per domestic tax law at a rate of 20% (plus surcharge and cess), unless a Double Taxation Avoidance Agreement (DTAA) offers a more beneficial rate. To avail DTAA benefits, non-resident shareholders must provide a copy of their PAN (if available), a valid Tax Residency Certificate (TRC), an e-filed Form 41, and a self-declaration regarding their tax residency and beneficial ownership.
Submission Deadlines and General Instructions
Shareholders are requested to submit all necessary documents and declarations by Saturday, August 8, 2026, via email to [email protected]. Any submissions received after this date will not be considered. The company emphasizes that while it will apply TDS at the rate determined, shareholders have the option to file their income tax return to claim any eligible refund if tax was deducted at a higher rate due to incomplete documentation. Shareholders with multiple accounts under different statuses or categories linked to a single PAN will have the highest applicable tax rate applied to their entire holding.
Source: BSE
