Aditya Birla Real Estate notifies shareholders on TDS rules for dividend payouts. Stay updated on compliance steps and tax obligations.
Aditya Birla Real Estate Issues Notice on Dividend Tax Deduction for FY25
June 26, 2025 | Mumbai —
Aditya Birla Real Estate Ltd (BSE: 500040) has released an official notification to their shareholders on tax deduction at source (TDS) on dividend payment. The release follows normal regulatory procedures under the Income Tax Act, 1961, and is very important for investors waiting to receive dividend income during the current financial year.
As per the notice issued on June 26, 2025, and filed with the Bombay Stock Exchange (BSE), the company has specified the TDS rules applicable on the disbursal of dividend and documentation shareholders are required to provide to facilitate proper tax treatment.
This move is among the company’s efforts to be transparent and in compliance with regulations prior to the next dividend payment.
What Shareholders Need to Know
As per the Income Tax Act, companies are required to deduct TDS on dividend income if the total dividend exceeds ₹5,000 in a financial year. The company emphasized that:
- Resident individuals will face a TDS rate of 10% if their Permanent Account Number (PAN) is registered and valid.
- Non-filing of PAN or submission of an invalid PAN will attract TDS at a higher rate of 20%.
- Non-resident shareholders, including Foreign Institutional Investors (FIIs), will be taxed according to rates defined under the Double Tax Avoidance Agreement (DTAA) or at standard rates as per Indian tax laws.
Documentation and Declarations Required
To facilitate appropriate tax deduction and avoid defaults, Aditya Birla Real Estate Ltd has requested shareholders to submit the following, where applicable:
- Form 15G / 15H – For resident individuals and senior citizens whose income is below the taxable threshold.
- Valid PAN – To avail reduced TDS rates.
- Tax Residency Certificate (TRC) – For non-resident shareholders intending to claim DTAA benefits.
- Declaration under Rule 37BC – Applicable to non-residents without PAN.
The last date for submission of these documents will be notified by the company in a subsequent announcement or directly communicated to shareholders through email and the investor portal.
Digital Access to the Circular
The official circular regarding the “Deduction of Tax at Source on Dividend Payment” is available for download on the BSE portal. You can access it directly via the BSE link for Aditya Birla Real Estate Ltd. The notice also includes FAQs and a checklist to simplify compliance for shareholders.
Why This Matters for Investors
Tax compliance on dividends has become increasingly stringent in recent years. Since the abolition of the Dividend Distribution Tax (DDT) regime in April 2020, the onus has shifted to shareholders to report and pay tax on dividend income, with companies deducting TDS upfront.
Failure to furnish the correct documents or delays in submission may result in excess tax deduction, which shareholders will need to claim as a refund while filing their returns—potentially delaying access to their rightful income.
By proactively issuing this communication, Aditya Birla Real Estate Ltd aims to minimize discrepancies, promote investor awareness, and streamline the tax deduction process for all categories of shareholders.
Next Steps for Shareholders
- Review the official communication for applicable clauses.
- Collect the necessary documentation such as PAN, TRC, or Form 15G/15H.
- Submit declarations before the deadline set by the company.
- Monitor further announcements on the exact dividend record date and payout timeline.
Conclusion
This new move from Aditya Birla Real Estate Ltd is a proactive one regarding investor interaction and tax reporting. Shareholders should keep themselves informed, complete documentation in a timely manner, and consult a financial advisor in case they are unclear about the relevant TDS treatment.
Keep following StockTradeUpdates.com for more news on dividend announcements, tax policies, and corporate actions.
