Welspun Corp issues TDS communication for upcoming dividend. Shareholders must update tax details to avoid higher deduction.
Welspun Corp Issues TDS Communication on Upcoming Dividend: Shareholders Must Act Promptly
Mumbai, June 10, 2025 — Welspun Corp Ltd (BSE: 132144), a leading global manufacturer of large-diameter pipes, has issued an important communication to its shareholders regarding the deduction of tax at source (TDS) on the upcoming dividend payout. This announcement, filed with the Bombay Stock Exchange (BSE), urges shareholders to take necessary action to ensure timely compliance with tax provisions and avoid excess tax deduction.
The formal notice titled “Deduction of Tax at Source on Dividend – Shareholders Communication” outlines the applicable tax rules and documentation requirements for investors to benefit from lower TDS rates or exemptions, where applicable.
TDS Applicability Under Indian Tax Laws
As per the Income Tax Act, 1961, dividend income is taxable in the hands of shareholders. Consequently, companies distributing dividends are mandated to deduct tax at source before making the payout.
Welspun Corp’s communication reminds shareholders that:
- Resident shareholders are subject to TDS at 10%, provided their PAN (Permanent Account Number) is available.
- In the absence of a valid PAN or if PAN validation fails, TDS will be deducted at 20%.
- Non-resident shareholders will be taxed at rates prescribed under the Income Tax Act or as per the relevant tax treaty, subject to submission of appropriate documentation such as Form 10F, tax residency certificate, and declaration.
Required Actions for Shareholders
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To receive the dividend with the correct tax treatment, shareholders must upload necessary documents by the specified deadline via the designated online portal or submit them to the company’s registrar.
The company strongly advises investors to:
- Verify PAN linkage with their demat or folio accounts.
- Submit lower/nil deduction forms (Form 15G/15H) if eligible.
- Non-resident investors should ensure timely submission of tax residency certificates and other documents for treaty benefits.
No Action May Lead to Higher TDS Deduction
Shareholders who fail to complete the documentation within the prescribed timelines will face a higher rate of tax deduction, which may later require filing an income tax return to claim refunds.
Welspun Corp also emphasized that deduction of tax at source is a statutory obligation, and the company will not entertain requests for reprocessing of dividends due to incomplete or incorrect documentation after the record date.
Why This Communication Matters
Dividend payments are a critical part of shareholder return, particularly within capital-intensive businesses such as Welspun Corp. Nevertheless, failure to meet tax documentation standards can dilute the effective return for investors.
The update is consistent with corporate governance standards and investor transparency culture that Welspun Corp has been known to follow. It also finds resonance in the wider industry trends where tax reporting is turning more digital and investor-centric.
About Welspun Corp Ltd
Welspun Corp Ltd is a flagship company of Welspun Group with operations in India, the USA, and Saudi Arabia. It is a world-leading manufacturer of large-diameter pipes for oil & gas transmission, water transportation, and other infrastructure projects.
Its shares are listed on the Bombay Stock Exchange with the scrip code 132144. Welspun has a consistent dividend-paying track record and is committed to returning value to its shareholders.
Access the Official PDF Announcement
For further details, shareholders can access the official BSE filing here:
📄 Download PDF Announcement
