Bharat Forge Limited announced an Interim Dividend of Rs. 2/- per equity share (100% on a face value of Rs. 2/-) for FY 2025-26, following the Board meeting on February 12, 2026. Shareholders must update their bank details mandatorily for electronic credit. Crucially, specific documentation, including Form 15G/15H or PAN proof, must be submitted by February 18, 2026, to ensure correct Tax Deduction at Source (TDS) applications.
Interim Dividend Declaration Details
Bharat Forge Limited has formally communicated the declaration of an Interim Dividend. The Board of Directors, in their meeting held on Thursday, February 12, 2026, approved an Interim Dividend of Rs. 2/- per equity share. This represents 100% dividend based on the face value of Rs. 2/- per share for the Financial Year 2025-26.
Mandatory Bank Detail Updation
All shareholders are strongly urged to ensure their bank account details are correctly updated, as dividends must be paid EXCLUSIVELY through electronic means, replacing physical warrants or cheques.
- For Demat Holders: Updates must be processed through your respective Depository Participant.
- For Physical Holders: Updates must be sent to the Registrar and Transfer Agent, MUFG Intime India Private Limited, along with PAN, mobile number, email ID, and bank details. Note that dividend payment for physical shares is contingent upon furnishing all mandated details.
Requests for updates to PAN or Residential Status will not be accepted after the Record Date of February 18, 2026.
Tax Deduction at Source (TDS) Requirements
In line with the Finance Act, 2020, dividend income is taxable in the hands of shareholders, requiring the Company to deduct TDS at source. Shareholders must submit the necessary documents by February 18, 2026, to ensure compliance and correct TDS application.
TDS Rules for Resident Shareholders
The applicable TDS rate depends on whether the shareholder provides the required documentation:
| Particulars | Applicable Rate | Required Documents |
|---|---|---|
| Total dividend not exceeding INR 10,000/- | Nil | Valid Form 15G or 15H furnished. |
| PAN is available | 10% | Update PAN with Depository Participant or RTA. |
| PAN is not available/invalid PAN | 20% | PANs not linked with Aadhaar may be treated as inoperative. |
| Entities like LIC, GIC (where Sec. 194 is not applicable) | Nil | Self-attested copy of PAN and valid IRDAI registration certificate. |
Shareholders covered under Section 196 (e.g., Mutual Funds, Government) are also exempt from TDS, provided necessary documentation is submitted.
TDS Rules for Non-Resident Shareholders
Non-resident shareholders (including FII/FPI) are subject to a rate of 20% (plus applicable surcharge and cess) OR the DTAA Rate, whichever is lower.
To avail of Double Taxation Avoidance Agreement (DTAA) benefits, the following must be submitted by the due date:
- Self-attested copy of Indian PAN card. If PAN is unavailable, furnish details including country of residence TIN as per Annexure 4.
- Self-attested copy of Tax Residency Certificate (“TRC”) valid for the period April 01, 2025 to March 31, 2026.
- Self-declaration in Form 10F, including e-Form filing acknowledgment for FY 2025-26.
- Self-declaration in Annexure 5 confirming treaty benefits eligibility, including compliance with the Principal Purpose Test, if applicable.
If the TRC is not in English, a duly notarized and apostilled English translation must be provided.
Important Deadlines and Instructions
All required forms and documents for claiming TDS exemption or reduced rates must be submitted via the RTA’s website or by email to [email protected] on or before Wednesday, February 18, 2026.
Incomplete or unsigned forms submitted after this deadline will not be accepted. Shareholders are advised that this communication is not tax advice and they should consult a tax professional for specific matters.
TDS Certificates and Refund Claims
Tax credit details can be verified in Form 26AS via the TRACES portal. TDS certificates will be emailed to registered addresses after the Company files its TDS return. If tax was deducted at a higher rate due to missing documents, shareholders can claim a refund by filing their Income Tax Return for the relevant financial year.
Source: BSE
