Hyundai Motor India Limited has issued a detailed communication to its shareholders regarding the Tax Deduction at Source (TDS) on dividend payouts for the Financial Year 2025-26. The company clarifies the applicable TDS rates and documentation requirements for both resident and non-resident shareholders, in line with the Income Tax Act, 2025. Shareholders are advised to submit necessary documents by August 12, 2026, to ensure correct TDS application.
Hyundai Motor India Clarifies Dividend TDS for FY 2025-26
Hyundai Motor India Limited has communicated essential details regarding the Tax Deduction at Source (TDS) applicable to dividend payments for the Financial Year 2025-26. This announcement follows the Board’s recommendation for a final dividend of 210%, or Rs. 21.00 per equity share, subject to shareholder approval at the upcoming Annual General Meeting (AGM) on August 26, 2026. The company emphasizes adherence to the provisions of the Income Tax Act, 2025, effective from April 01, 2026, which mandates TDS on dividend payouts.
TDS Rates and Requirements for Resident Shareholders
For resident shareholders, the TDS rate depends on their PAN status and compliance with the Income Tax Act. A valid PAN attracts a 10% TDS rate, provided the total dividend does not exceed Rs. 10,000 and the PAN is updated with depositories or the Registrar & Transfer Agent, Kfin Technologies Limited. Shareholders are urged to update their PAN, Email ID, and Mobile number via https://ris.kfintech.com/clientservices/investors/taxforms.aspx by August 12, 2026, 17:00 Hours (IST). Failure to link PAN with Aadhaar as per section 262(6) will result in a 20% TDS rate. Specific forms, such as Form 121, and lower deduction certificates may be required for certain categories or exemptions.
TDS Provisions for Non-Resident Shareholders
Non-resident shareholders will generally face a 20% TDS rate, plus applicable surcharge and cess. However, they can apply for beneficial tax rates under relevant Tax Treaties by submitting necessary documentation. This includes a copy of their Indian Tax Identification Number (PAN), a Tax Residency Certificate (TRC) valid for Tax Year 2026-27, and electronically generated Form 41 from the income tax portal. A self-declaration covering eligibility for tax treaty benefits and beneficial ownership of dividends is also required. The submission deadline for all documents related to claiming exemptions or deductions is Wednesday, August 12, 2026, 17:00 Hours (IST). Documents received after this date will not be considered.
Important Notes for Shareholders
Shareholders are reminded that all submitted documents must be self-attested. Ambiguous, incomplete, or conflicting information may lead to tax deduction at the maximum applicable rate. A valid PAN is mandatory; without it, a 20% TDS rate will apply. The company reserves the right to verify shareholder details and apply higher tax rates in case of discrepancies. The last date for submission of documents for claiming exemptions or deductions is strictly August 12, 2026. Any communication received after this date will not be entertained. Shareholders can find further details and upload documents on the Kfintech portal at https://ris.kfintech.com/clientservices/investors/taxforms.aspx.
Disclaimer: This information is for general guidance only and does not constitute legal or tax advice. Shareholders are advised to consult their own tax consultants for specific implications.
Source: BSE
