The Tata Power Company Limited is informing shareholders about dividend tax deduction rules for FY 2025-26. The company will deduct tax at source (TDS) on dividends, with rates varying based on residency and submitted documents. Shareholders are urged to update bank details and submit necessary tax forms, such as Form 121 and Tax Residency Certificates, by the cut-off date of June 22, 2026, to ensure correct TDS application.
Dividend Tax Deduction Underway
The Tata Power Company Limited has issued a communication to its shareholders regarding the tax deduction applicable to dividends for the financial year ended March 31, 2026. As per the Income Tax Act, 2025, dividends are taxable, and the company is mandated to deduct taxes at source (TDS) before payment. This process is subject to the dividend approval at the upcoming 107th Annual General Meeting and its subsequent payout during FY 2026-27.
Key Dates for Shareholders
Key dates announced by the company are as follows:
- AGM Date: Tuesday, July 7, 2026
- Record Date: Tuesday, June 23, 2026
- Dividend Payout Date: Friday, July 10, 2026
- Last Date to Submit Tax Related Documents: Monday, June 22, 2026
TDS Applicability for Residents
For Resident Shareholders, tax is to be deducted at 10% if a valid Permanent Account Number (PAN) is registered. If PAN is not available, invalid, or not linked with Aadhaar, a TDS rate of 20% will apply. Resident individuals are exempt from TDS if the total dividend does not exceed ₹10,000 or if they submit a valid Form 121. For shareholders other than individuals (e.g., Insurance Companies, Mutual Funds, NPS Trusts), specific self-declarations and supporting documents are required to claim nil or lower TDS rates.
TDS Applicability for Non-Residents
Non-Resident Shareholders will have taxes withheld as per domestic tax law at a rate of 20% (plus applicable surcharge and cess). They also have the option to be governed by the Double Tax Avoidance Agreement (DTAA) if it proves more beneficial. To avail DTAA benefits, non-residents must submit a self-attested copy of their Indian PAN card and a Tax Residency Certificate (TRC) for the year 2026-27.
Global Depositary Receipt (GDR) Holders
For GDR holders, TDS will be withheld at 10% plus applicable surcharge and cess, provided a self-attested copy of the PAN card is submitted. Without PAN details, the deduction will be at 20% plus applicable surcharge and cess.
Important Submission Deadlines
Shareholders are strongly advised to submit all required tax-related documents, including Form 121 and other declarations, by Monday, June 22, 2026. Documents submitted after this cut-off period will be accepted at the sole discretion of the Company. The company emphasizes that it is not obligated to apply beneficial DTAA rates without complete and satisfactory documentation. Failure to link PAN with Aadhaar may result in an increased TDS rate of 20%.
Communication Channels
For Resident Shareholders, documents can be uploaded via the link: https://web.in.mpms.mufg.com/formsreg/submission-of-Form-121-41.html or emailed to [email protected]. Non-Resident Shareholders can email their documents to [email protected]. Communications received after the cut-off date will not be considered.
The company also notes that tax credits can be viewed on Form 16B via TRACES or the Income Tax department’s e-filing website. Shareholders are advised to consult with a tax professional for any specific tax-related advice.
Source: BSE
