Grasim Industries has informed shareholders regarding the tax deduction at source (TDS) applicable to the dividend recommended for the financial year ended March 31, 2026. The company's Board recommended a dividend of ₹10 per equity share, subject to shareholder approval at the ensuing 79th Annual General Meeting. The payout will be made after deducting tax in accordance with the provisions of the Income-tax Act, 2025.

The applicable TDS rates vary significantly based on the shareholder's residential status and the documentation provided. For resident individuals, no tax will be deducted if the aggregate dividend during the tax year 2026-27 does not exceed ₹10,000. Other resident shareholders are subject to a 10% TDS, provided a valid PAN is on record. If the PAN is unavailable, invalid, or not linked with Aadhaar, the tax deduction rate increases to 20%.

Non-resident shareholders, including Foreign Institutional Investors and Foreign Portfolio Investors, face a standard withholding tax rate of 20% plus applicable surcharge and cess. However, this rate can be reduced if the shareholder provides a valid certificate under Section 395 of the Act or if they opt to be governed by the provisions of a Double Taxation Avoidance Agreement (DTAA). To avail DTAA benefits, non-resident shareholders must submit documents such as a Tax Residency Certificate, electronically filed Form 41, and a self-declaration confirming their tax residency and beneficial ownership status.

Specific categories of shareholders, such as insurance companies, mutual funds, and Alternative Investment Funds, may qualify for nil or lower tax deduction upon submission of self-declarations and relevant documentary evidence. The company has specified that nil or lower tax will be deducted for entities like the National Pension System Trust, recognized provident funds, and business trusts, provided they submit the requisite declarations and proof of exemption.

The following table summarizes the TDS rates applicable to different categories of shareholders:

Shareholders are required to submit necessary documents, including self-declarations and PAN copies, to the company's registrar and transfer agent, KFin Technologies Limited, by July 31, 2026. Documents can be uploaded via the specified portal or sent via email. The company emphasized that failure to provide the necessary information by this deadline will result in tax deduction at the higher prescribed rates, and no requests for revision will be considered after the date.

Grasim Industries repaid ₹750 crore commercial papers on June 25, 2026, upon maturity. The company completed the full and timely repayment to holders of the instruments, ensuring no outstanding balance remains. The transaction was executed in accordance with the SEBI Master Circular and the corporate announcement regarding the record date for redemption.

Repayment Details

The repayment addressed a specific issuance of commercial papers identified by ISIN INE047A14AY6. The company redeemed 15,000 papers, fulfilling its obligation on the due date.

The disclosure was made in compliance with SEBI/HO/DDHS/DDHS-PoD/P/CIR/2025/0000000137 dated October 15, 2025. Neelabja Chakrabarty, Company Secretary and Compliance Officer, confirmed the transaction.