Abbott India informs shareholders about tax deduction at source (TDS) on upcoming dividend payments. Read full details and compliance instructions.
Abbott India Announces TDS Guidelines for Upcoming Dividend Distribution
Mumbai, June 18, 2025 – Abbott India Ltd (BSE: 500488), a premier pharma company, has now formally intimated its shareholders regarding the Tax Deduction at Source (TDS) provisions in respect of dividends. This notification conforms to the regulatory requirements specified under the Income Tax Act, 1961 and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
The company issued a formal notification to prepare shareholders for the dividend payout to come and ensure they comply with tax regulations so they are not subject to excessive deduction or delayed payment.
Why TDS on Dividends Is Important
According to the Finance Act, 2020, income from dividends is taxable in the shareholders’ hands. Therefore, firms are required to deduct TDS prior to issuing dividends to resident as well as non-resident shareholders.
Abbott India, according to this rule, has outlined the TDS rate applicable, conditions of deduction lower or nil, and documents required for claim of benefit under Double Taxation Avoidance Agreements (DTAA), where applicable.
Highlights from the Company’s TDS Notice
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- TDS Rates for Resident Shareholders:
- 10% TDS will be deducted if PAN is available.
- 20% if PAN is not furnished or is invalid.
- Exemption may be claimed by submitting Form 15G/15H (subject to eligibility).
- Specific exemptions apply for mutual funds, insurance companies, and government bodies upon submission of relevant documentation.
- 10% TDS will be deducted if PAN is available.
- TDS Rates for Non-Resident Shareholders:
- TDS will be deducted at 20% (plus applicable surcharge and cess) or as per DTAA, whichever is beneficial, provided valid documentation is submitted.
- Non-residents must furnish a Tax Residency Certificate (TRC), Form 10F, and other documents to avail lower tax rates under DTAA.
- TDS will be deducted at 20% (plus applicable surcharge and cess) or as per DTAA, whichever is beneficial, provided valid documentation is submitted.
- Submission Timeline:
- Shareholders must submit their documents on or before the specified cut-off date, which will be detailed in the final dividend notice closer to the record date.
- Shareholders must submit their documents on or before the specified cut-off date, which will be detailed in the final dividend notice closer to the record date.
How to Submit the Required Documents
Abbott India has enabled both digital and physical methods for document submission:
- Through the company’s Registrar and Transfer Agent (RTA) portal.
- Emailing the required forms and proofs to the official shareholder helpdesk.
- Upload via designated investor services portal.
The company encourages early submission to avoid last-minute issues and to ensure accurate crediting of dividend amounts post-TDS compliance.
Company’s Statement
In its official release, Abbott India stated:
“We are committed to maintaining transparency and compliance in all shareholder communications. Our latest intimation ensures that shareholders are aware of TDS applicability and can act accordingly. We appreciate our investors’ cooperation in maintaining smooth dividend disbursement procedures.”
Impact on Shareholders and Investors
This move is standard procedure, yet timely communication is vital. Shareholders who overlook filing necessary declarations could face higher deductions or delays in receiving full dividend amounts. Institutional investors and retail shareholders alike are advised to cross-verify their PAN details, residential status, and tax eligibility.
About Abbott India Ltd
Abbott India Limited is one of the nation’s oldest and most respected pharmaceutical companies, offering high-quality branded generic drugs in therapeutic classes. It is a subsidiary of global healthcare company Abbott Laboratories and has continued to show sound financial performance, with regular dividends issued over the years.
Investor Relations and Contact
For queries related to this TDS announcement, shareholders can contact:
- Investor Relations Email: investor.relations@abbott.co.in
- RTA Contact: [Insert RTA details here based on actual PDF]
- Abbott India Website: https://www.abbott.co.in
