Bajaj Electricals Limited has detailed the tax deduction at source (TDS) provisions for the final dividend of Rs.3.00 per equity share for the financial year ended March 31, 2026. The company has fixed Friday, July 17, 2026, as the record date to determine shareholder eligibility, with the payout scheduled on or before August 10, 2026. Shareholders must ensure their details, including PAN and residential status, are updated with the Registrar and Transfer Agent by the record date to avoid higher tax deductions or withholding of payouts.

The Board of Directors recommended the dividend on May 15, 2026, subject to approval at the 87th Annual General Meeting on Thursday, August 6, 2026. Under the Income Tax Act, 2025, dividends are taxable in the hands of shareholders. Consequently, the company is mandated to deduct TDS at applicable rates. Failure to provide a valid PAN or link it with Aadhaar may result in a higher TDS rate of 20% under Section 397(2) of the IT Act.

Key Dates for Dividend Payment

TDS Provisions for Resident Shareholders

Resident shareholders are generally subject to a 10% TDS rate under Section 393(1) of the IT Act. However, no tax will be deducted if the dividend does not exceed Rs. 10,000 in a financial year for resident individual shareholders. Specific entities such as Mutual Funds, Insurance Companies, and Government bodies are exempt from TDS upon submission of valid registration certificates. Individuals with no tax liability or those aged 60 years and above with no tax liability can submit Form No. 121 to claim exemption.

TDS Provisions for Non-Resident Shareholders

Non-resident shareholders, including Foreign Portfolio Investors, face a TDS rate of 20% plus applicable surcharge and cess under Section 393(2) of the IT Act. These shareholders have the option to be governed by the Double Tax Avoidance Agreement (DTAA) if more beneficial. To avail treaty benefits, non-resident shareholders must submit a self-attested copy of their Tax Residency Certificate, Electronic Form 41, and a self-declaration certifying their tax residency and eligibility for the beneficial rate by July 17, 2026.

Shareholders can upload the required documents, such as Form No. 121 and registration certificates, via the specified link provided by the company's Registrar and Transfer Agent. The company clarified that any communication received after the record date will not be considered, and incomplete or unsigned forms will be rejected. Dividends will be paid only through electronic mode, and payouts may be withheld if bank details are inadequate or not registered.

Bajaj Electricals has received an appellate order significantly reducing a tax demand related to the Goods and Services Tax (GST) for FY 2018-19. The Office of the Additional Commissioner of State Tax (Appeal), Chhattisgarh, partially accepted the company's submissions and lowered the demand to Rs.92.89 lakh, which includes a general penalty of Rs.4.28 lakh. This order, dated June 10, 2026, modifies the initial assessment issued by the Deputy Commissioner of State Tax, Division-02, Raipur, which had alleged differences in tax payable, input tax credit, B2B tax declared, and credit notes.

The original order, dated April 25, 2024, had resulted in a total tax demand of Rs.1.34 crore, inclusive of a general penalty of Rs.6.40 lakh. The reduction follows the company's appeal against the earlier assessment. The management stated that it is currently evaluating appropriate legal remedies available under law, which may include filing an appeal before the appropriate appellate tribunal or initiating writ proceedings before the Hon'ble High Court against the new order.

According to the disclosure, the financial impact of the appellate order will be limited to the extent of the revised demand and the penalty levied. The company clarified that there is no impact on the operational, financial, or other activities of the company on account of this order or assessment.

Breakdown of Tax Demand

The disclosure was made to BSE Limited and National Stock Exchange of India Limited in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015.