Bajaj Electricals informs shareholders on TDS rules for dividends in FY 2025–26. Stay updated on tax deductions, exemptions, and submission deadlines.
Bajaj Electricals Issues Notice on TDS Deduction for FY 2025-26 Dividends
Mumbai, June 23, 2025 — Bajaj Electricals Ltd (BSE: 500031), a leading Indian electrical equipment and consumer appliances company, has officially issued its tax deduction at source (TDS) instructions to be effective on dividends for the financial year 2025–26.
Such a notice, issued via a regulatory filing on the Bombay Stock Exchange (BSE), aims to inform resident as well as non-resident shareholders of applicable tax provisions, qualified lower or nil deduction, declarations to be filed, and the last date for filing relevant forms for exemption or lower TDS.
Why This Update is Important to Stockholders
As per the Income Tax Act, 1961, dividend that has been declared and paid by Indian companies is subject to taxation in the hands of the shareholders. Accordingly, firms are required to deduct TDS before paying out dividend. Bajaj Electricals’ recent notification informs how it intends to adhere to these regulations, being transparent and regulatory compliant prior to announcing its forthcoming dividend.
The action is in line with investor expectations and SEBI directions mandating listed companies to voluntarily disclose tax-related liabilities and instructions.
TDS Applicability and Rates for FY 2025–26
Here’s a summary of TDS provisions as applicable to shareholders:
- Resident Shareholders:
- TDS at 10% will be deducted on dividends exceeding ₹5,000 in a financial year.
- Shareholders can avoid TDS by submitting a valid Form 15G/15H, provided their total income is below the taxable limit.
- PAN submission is mandatory. In case of non-PAN submission, TDS will be deducted at a higher rate of 20%.
- TDS at 10% will be deducted on dividends exceeding ₹5,000 in a financial year.
- Non-Resident Shareholders:
- TDS will be deducted at 20% (plus applicable surcharge and cess), unless a lower rate is provided under a Double Taxation Avoidance Agreement (DTAA).
- To claim treaty benefits, shareholders must submit documents such as:
- Tax Residency Certificate (TRC)
- Form 10F
- Self-declaration for beneficial ownership and eligibility under DTAA
- Tax Residency Certificate (TRC)
- TDS will be deducted at 20% (plus applicable surcharge and cess), unless a lower rate is provided under a Double Taxation Avoidance Agreement (DTAA).
These documents should be submitted on or before the record date specified by the company for dividend eligibility.
Submission Procedure and Deadline
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Bajaj Electricals has facilitated easy uploading of necessary documents by shareholders through a specific investor portal. The company prefers early filing to prevent last-minute technical issues or disqualification for lower TDS rates.
For PAN-linked KYC-compliant shareholders holding demat shares, documents can be filed electronically through their respective Depository Participant’s portal. In case of physical shareholders, the necessary documents can be sent through email or uploaded through the link provided in the BSE official filing.
Encouraging Tax Compliance and Shareholder Awareness
By releasing this detailed communication, Bajaj Electricals not only satisfies statutory requirements but also fosters tax sensitivity among its investor base. The advance release of this TDS update makes sure that investors are not taken aback by the dividend disbursal process and are able to hold on to the maximum value of their investments.
This works particularly well for old people and small investors, many of whom will be eligible for nil tax deduction if they get the forms in on time.
Accessing the Official PDF and More Details
The full text of Bajaj Electricals’ TDS communication can be accessed from the official BSE portal or directly through the link below:
👉 Download Official Communication PDF
The document outlines detailed instructions, timelines, and examples to help shareholders comply accurately.
About Bajaj Electricals Ltd
Established in 1938, Bajaj Electricals Ltd is a member of the Bajaj Group and has been a trusted brand in lighting, fans, appliances, and EPC projects. Listed on the BSE under the symbol BAJAJELEC, the company caters to millions of customers in India and continues to have robust investor relationships through constant regulatory communication.
