HB Portfolio Limited has issued a communication to its members regarding the tax deduction at source (TDS) applicable to the interim dividend declared on 10th August 2026. The dividend amount is Rs. 1.25 per equity share. The company is explaining the tax implications and the process for members to ensure appropriate deduction, based on their residency status and tax declarations, as per the Income Tax Act, 2025.
Interim Dividend Tax Implications Detailed
HB Portfolio Limited has provided clarity to its shareholders regarding the Tax Deducted at Source (TDS) on the interim dividend declared for the Financial Year 2026-27. The dividend amount is Rs. 1.25 per equity share of Rs. 10/- each.
Key Dates and Dividend Payout
The interim dividend was declared on 10th August 2026 and will be paid to members holding equity shares as of the record date, 14th August 2026. Payments will be disbursed electronically within 30 days of declaration.
TDS Regulations Explained
As per the Income Tax Act, 2025, dividend income is taxable, and the company is mandated to deduct tax at source. The applicable TDS rates vary based on the member’s residential status, entity classification, and PAN details registered with depositories or the company’s Registrar and Share Transfer Agent (RTA).
Resident Members
- For resident individuals, no tax is deducted if the total dividend received during the Tax Year 2026-27 does not exceed Rs. 10,000, or if they meet specific eligibility criteria via Form 121 or possess an exemption certificate from the Income Tax Department.
- For resident members other than individuals (e.g., Insurance Companies, Mutual Funds, NPS Trusts), tax is not deducted if they provide required documents and self-declarations for exemption as per the IT Act, 2025.
Non-Resident Members
- For non-resident members, TDS is generally applicable at 20%.
- Lower or Nil tax rates may apply if a certificate is provided under Section 395(1) of the IT Act, 2025.
- Non-resident members can also opt for tax rates as per Double Tax Avoidance Agreement (DTAA) between India and their country of residence, provided these rates are more beneficial. This requires submission of specific documents, including a PAN card (or equivalent tax identification), a Tax Residency Certificate (TRC), and a declaration of having no Permanent Establishment in India.
General Instructions for Members
Members are advised to ensure their bank account and KYC details are updated with their Depository Participants or the RTA. To avail lower tax rates or exemptions, eligible resident and non-resident members must submit valid certificates and documents by 26th August 2026. Failure to comply with the timelines or provide complete, valid documentation may result in the application of higher statutory tax deduction rates. The company and RTA will verify all submitted documents.
Claiming TDS Credit
Members can verify their TDS credit through the Income Tax Portal by accessing Form 131 (new non-salary TDS certificate) and Form 16B (revised Annual Information Statement). The company is not liable for demands arising from misrepresentations or inaccuracies in information provided by members.
Source: BSE
