Bajaj Finance informs shareholders on TDS for final dividend
Bajaj Finance Limited issued a communication on June 9, 2026, to shareholders regarding TDS on final dividend and bank account updates. The notice instructed shareholders on claiming tax exemption and updating bank details for electronic payments, referencing the Income Tax Act, 2025, and SEBI Listing Regulations.

*this image is generated using AI for illustrative purposes only.
Bajaj Finance Limited has informed shareholders about the Tax Deduction at Source (TDS) applicable to the final dividend and the necessity of updating bank account details to ensure compliance with regulatory mandates. The communication, sent on Tuesday, 9 June 2026, addresses shareholders holding shares as of the cut-off date of Friday, 5 June 2026. The company emphasized that dividend income is taxable in the hands of shareholders under the Income Tax Act, 2025, necessitating tax deduction at source by the company where applicable.
The company detailed the documentation required for shareholders to claim exemption from TDS on dividend income. To avoid deduction, eligible shareholders must provide the necessary proof of exemption as per the provisions of the Income Tax Act, 2025. This measure ensures that the company adheres to its statutory obligation to deduct tax at source while allowing shareholders to validate their eligibility for concessions.
In addition to tax compliance, Bajaj Finance Limited requested shareholders to update their bank account details. For shares held in dematerialised form, details must be updated with the Depository Participant. For physical shareholdings, updates should be made directly with the company or its Registrar and Transfer Agent, KFin Technologies Ltd. This step is critical as the company is mandated to pay dividends exclusively through electronic modes under the SEBI Listing Regulations.
The communication serves as a procedural notice to facilitate smooth dividend distribution and regulatory adherence. Shareholders were advised to act promptly to ensure their records are current and to avoid any disruptions in receiving payments. A specimen copy of the detailed communication is available on the company's website for reference.
| Requirement | Action Required | Target Entity |
|---|---|---|
| TDS Exemption | Submit documentation for tax exemption claim | Bajaj Finance Limited / Depositories |
| Bank Details Update | Update bank account information | Depository Participant (Demat) / Company or RTA (Physical) |
Historical Stock Returns for Bajaj Finance
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.53% | -0.71% | -8.88% | -13.83% | -8.34% | +43.03% |
How will the stricter TDS compliance under the new Income Tax Act, 2025, impact dividend yield attractiveness for retail investors?
What penalties or operational disruptions might shareholders face if they fail to meet the June 5, 2026, cut-off for updating bank details?
Could the mandatory electronic payment mode lead to a significant acceleration in the full dematerialization of remaining physical shareholdings?


































