Berger Paints notifies shareholders about TDS deductions on dividends. Read full details of the official communication and its implications.
Berger Paints India Issues Shareholder Advisory on TDS Deduction for Dividends
June 12, 2025 | Mumbai:
Berger Paints India Ltd, a major decorative paints and coatings producer in India, has made an official shareholder communication for the deduction of tax at source (TDS) in respect of the forthcoming dividend distribution. The announcement, as required under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, was filed with the Bombay Stock Exchange on 12 June 2025.
This advance communication is a formal notice and guidance letter to the shareholders regarding how TDS will be charged on dividends declared by the company for the ongoing financial year. Berger Paints’ announcement precedes its expected dividend payout, keeping investors well aware and in a position to take timely action to mitigate higher tax deductions.
Why This Communication Matters
According to the company’s attached letter (available on BSE’s official website), the dividend income is taxable in the hands of shareholders as per the provisions introduced under the Finance Act, 2020. Companies like Berger Paints are mandated to deduct TDS at prescribed rates before disbursing dividends.
For resident shareholders, if their Permanent Account Number (PAN) is registered with the company, the TDS normally will be deducted at 10%. But if the PAN is not updated or proper declarations (like Form 15G or Form 15H) are not given, then the deduction may be more, even up to 20%.
This notice emphasizes the need to update KYC records and filing correct tax exemption forms wherever due. Non-resident shareholders, however, are liable to TDS as per the provisions of the Income Tax Act or relevant Double Taxation Avoidance Agreements (DTAA).
Key Highlights from Berger Paints’ TDS Policy
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- 10% TDS for PAN-registered Resident Shareholders
If shareholders have submitted valid PAN, TDS will be deducted at 10%. If not, the rate increases significantly. - Eligibility for Exemption or Lower TDS
Shareholders seeking exemption (such as senior citizens or those below the taxable limit) must submit Form 15G or Form 15H within the specified deadline. - Applicability for Non-Residents
For foreign shareholders, TDS will be deducted at rates governed by the Income Tax Act or DTAA, whichever is beneficial, subject to the submission of relevant tax documents. - Deadline for Document Submission
Berger Paints will notify the final cut-off date by which all tax declarations and KYC updates must be completed. This is crucial for processing dividends without excess deductions. - Digital Submissions Preferred
The company encourages shareholders to upload documents through designated portals or submit them electronically for faster processing.
What Shareholders Should Do
To ensure accurate and minimal tax deduction, Berger Paints urges all shareholders to:
- Verify that their PAN is linked to their shareholder account.
- Submit Form 15G/15H if they are eligible for exemption.
- Update bank account and KYC details with the registrar or depository participant.
- Non-residents must provide documents such as Tax Residency Certificate (TRC), Form 10F, and other DTAA documentation.
Shareholders are advised to check their emails or visit the company’s investor relations page for the complete text of the communication. The full PDF of the advisory is also available on the BSE India website.
Looking Ahead
This communication by Berger Paints is part of a growing trend among listed companies to maintain transparency and minimize post-dividend disbursement grievances. As tax compliance becomes increasingly digitized and stringent, such proactive disclosures help investors manage their tax liabilities efficiently.
For long-term investors, staying updated with dividend-related tax policies is essential—not just for compliance but also for optimizing returns. With its commitment to governance and investor education, Berger Paints continues to set a benchmark in corporate communication.
