Biocon outlines TDS rates for FY26 final dividend of ₹0.50
Biocon Limited has communicated the Tax Deducted at Source (TDS) rates applicable to the final dividend of ₹0.50 per share for FY26, recommended by the Board and subject to shareholder approval at the AGM on August 6, 2026. The company specified TDS rates for various resident and non-resident categories under the Income Tax Act, 2025, noting that tax will be deducted at 20% for residents without a valid PAN or Aadhaar linkage. Shareholders must update KYC details and submit necessary documents like Form 121 and TRCs to KFin Technologies Limited by July 20, 2026, to ensure correct tax deduction and electronic dividend credit.
*this image is generated using AI for illustrative purposes only.
Biocon Limited has detailed the Tax Deducted at Source (TDS) provisions applicable to the final dividend for the financial year ended March 31, 2026. The company’s Board of Directors recommended a final dividend of ₹0.50 per equity share, representing a rate of 10% on the face value of ₹5 each. This payout is subject to approval by shareholders at the 48th Annual General Meeting scheduled for August 6, 2026.
The dividend will be paid to shareholders whose names appear in the Register of Members as on the record date of Friday, July 3, 2026. Under the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, dividends will be credited electronically only to shareholders with registered bank details. The company will withhold payment for those without updated bank information until the details are provided.
TDS Rates for Resident Shareholders
The company is required to deduct TDS as per the Income Tax Act, 2025. The applicable rates for resident shareholders vary based on category and documentation:
| Section | Category | TDS Rate | Conditions |
|---|---|---|---|
| 393(4) | Insurance companies | Nil | Self-declaration and IRDAI/LIC/GIC certificate required. |
| 393(5) | Mutual Funds | Nil | Self-declaration and registration certificate required. |
| 393(5) | Central Act Corporations | Nil | Self-declaration and exemption evidence required. |
| 393(9) | New Pension System Trust | Nil | Self-declaration and registration certificate required. |
| 393 | Alternative Investment Fund (AIF) | Nil | Self-declaration and registration certificate required. |
| 395 | Certificate holders | As per certificate | Valid certificate for tax year 2026-27 required. |
| 393(4) | Other Residents | Nil | Dividend does not exceed ₹10,000 or valid Form 121 submitted. |
| 393(1) | Other Residents | 10% | Shareholder holds a valid PAN. |
| 397(2) | Other Residents | 20% | Shareholder lacks PAN, has invalid PAN, or PAN not linked with Aadhaar. |
Provisions for Non-Resident Shareholders
For non-resident shareholders, tax will be deducted at the rates specified below, subject to the submission of valid documents such as Tax Residency Certificates (TRC) and Form 41.
| Section | Category | TDS Rate | Conditions |
|---|---|---|---|
| 393 | Category III AIF | 10% + surcharge & cess | Self-attested PAN and registration certificate required. |
| 395 | Certificate holders | As per certificate | Valid certificate for tax year 2026-27 required. |
| 393(2) | Non-residents/FII/FPI | 20% + surcharge & cess | PAN and SEBI registration certificate required. |
Non-resident shareholders may opt for beneficial rates under Double Taxation Avoidance Agreements (DTAA) if they provide a valid TRC and a self-declaration confirming tax residency and beneficial ownership.
Compliance and Documentation Deadlines
Shareholders must ensure their PAN, address, and bank details are updated with their Depository Participants or the company’s Registrar and Transfer Agent, KFin Technologies Limited. Documents such as certificates, declarations, and Form 121 must be uploaded via the designated link or sent physically to KFin Technologies Limited on or before Monday, July 20, 2026. Communications received after this date will not be considered.
In the event of incomplete documentation, tax will be deducted at the higher prescribed rate. Shareholders can claim refunds by filing income tax returns if applicable. Post-payment, TDS credits will be available in Form 168 on the income tax e-filing portal.
Historical Stock Returns for Biocon
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.14% | -0.73% | -1.89% | +7.70% | +15.20% | +2.82% |
How will the updated TDS provisions under the Income Tax Act, 2025, impact Biocon's overall dividend payout ratio for FY2026?
What is the expected shareholder turnout for the 48th Annual General Meeting given the low dividend recommendation?
Could the strict documentation deadlines lead to a temporary dip in liquidity for shareholders with unverified bank details?
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