Colgate-Palmolive (India) Limited has issued a communication to its shareholders clarifying the tax provisions on its First Interim Dividend for the Financial Year 2026-27. The dividend, declared on October 22, 2026, will be subject to Tax Deducted at Source (TDS) as per the Income Tax Act, 2025. The company has outlined specific TDS rates for resident and non-resident shareholders, including requirements for PAN, Aadhaar linkage, and the applicability of Double Taxation Avoidance Agreements (DTAAs).
Colgate-Palmolive (India) Ltd. Announces Dividend Tax Guidelines
Colgate-Palmolive (India) Limited has informed its shareholders about the tax provisions applicable to the First Interim Dividend declared for the Financial Year 2026-27. The dividend, declared by the Board of Directors on October 22, 2026, is set to be paid from November 19, 2026, to eligible shareholders as of the record date, November 2, 2026.
Resident Shareholder Tax Provisions
For resident shareholders, Tax Deducted at Source (TDS) will be applied at 10% on the dividend amount, provided a Permanent Account Number (PAN) is furnished. If PAN is not provided or not linked with Aadhaar, the TDS rate will be 20%. Notably, no tax will be deducted for resident individuals if the total dividend received does not exceed ₹10,000 for the financial year. Shareholders meeting specific eligibility criteria and providing Form 121 may also be exempt from TDS.
Non-Resident Shareholder Tax Provisions
Foreign Portfolio Investors (FPIs), Foreign Institutional Investors (FIIs), and other non-resident shareholders will have TDS deducted at the rates in force, typically 20%, as per Section 393(2) of the Income Tax Act, 2025. Non-residents also have the option to avail benefits under Double Taxation Avoidance Agreements (DTAAs) if more favourable. To claim these benefits, shareholders must submit specific documents, including a PAN, Tax Residency Certificate (TRC), and a self-declaration regarding their eligibility for treaty benefits.
Document Submission Deadline
The company has set a deadline of November 2, 2026, 05:00 PM IST for the submission of all required documents to its Registrars & Transfer Agents, MUFG Intime India Private Limited. Timely submission is crucial for the company to determine the appropriate TDS rate. Shareholders are advised that tax once deducted will not be refunded, and the company’s decision on the applicable TDS rate will be final. Shareholders can only submit documents once.
General Information for Shareholders
The company also reminds shareholders that dividend payments will only be made through electronic mode from April 1, 2024, and that all personal details such as PAN, KYC, and bank account information must be updated to receive the dividend. Shareholders are encouraged to seek tax advice from a professional regarding their specific tax matters.
Source: BSE
