IndusInd Bank has detailed the tax deduction at source (TDS) implications for the final dividend of ₹1.50 per equity share for the financial year ended March 31, 2026. The dividend, recommended by the Board on April 24, 2026, is subject to shareholder approval at the Annual General Meeting scheduled for August 2026. The bank clarified that dividend income is taxable in the hands of shareholders under the Income Tax Act, 2025, necessitating TDS at the time of payment.

The record date for determining shareholder eligibility is Friday, June 26, 2026. To ensure appropriate tax deduction, eligible shareholders must submit relevant tax exemption forms by Monday, July 6, 2026. The bank emphasized that any declaration received after this deadline will not be accepted, and TDS will be deducted based on the records available with the Registrar and Transfer Agent, MUFG Intime India Private Limited.

TDS Rates for Resident Shareholders

For resident shareholders, the bank will deduct TDS under Section 393 of the Income Tax Act, 2025. The applicable rates and conditions are summarized below:

Specific entities such as insurance companies, mutual funds, and Alternative Investment Funds (Category I and II) can claim NIL or lower TDS by submitting a self-declaration and supporting documents, including a self-attested PAN card.

TDS Rules for Non-Resident Shareholders

Non-resident shareholders, including Foreign Portfolio Investors (FPIs), are subject to a higher withholding tax rate. The standard deduction is 20% plus applicable surcharge and cess. However, shareholders may opt for benefits under the Double Tax Avoidance Agreement (DTAA) if more favorable. To avail DTAA benefits, non-residents must provide a self-attested PAN card, Tax Residency Certificate (TRC) for FY26, and Form 41 from the income tax portal.

Special provisions exist for specific categories:

• Alternative Investment Fund - Category III (IFSC): 10% TDS upon submission of self-declaration and documentary evidence.
• Sovereign Wealth Funds and Pension Funds (Schedule V(7)): NIL TDS subject to CBDT notification and compliance declaration.
• Offshore Banking Unit (Category I FPI): 10% TDS with valid PAN and supporting documents.

The bank clarified that the application of beneficial DTAA rates depends on the satisfactory review of submitted documents. In the absence of valid documentation, the bank is obligated to deduct tax at the prescribed rates.

Compliance and Documentation

Shareholders must update their PAN, email address, and other details with their depository participants or the Registrar and Transfer Agent to avoid higher TDS deductions. The bank specified that inoperative PANs, due to non-linkage with Aadhaar, will result in tax deduction at higher rates as per the Income Tax Act.

Documents must be uploaded to the Registrar and Transfer Agent's portal before July 6, 2026. The bank reserves the right to rely on its independent assessment if information provided by shareholders is found to be contrary to declarations, potentially leading to higher tax deductions. Shareholders can claim refunds for excess tax deducted by filing their income tax returns.

indusind bank granted 18,500 stock options to 5 eligible employees under its Employee Stock Option Scheme (ESOP Scheme) on June 24, 2026. The Compensation and Nomination & Remuneration Committee approved the grant, which allows options to be converted into an equal number of equity shares upon exercise. The grant price is fixed at Rs. 905.45 per share, based on the closing price on the National Stock Exchange on June 23, 2026.

The vesting schedule for these options is structured over three years from the date of grant. The options will vest in three tranches: 33% at the end of the first year, another 33% at the end of the second year, and the remaining 34% at the end of the third year. Following vesting, employees have an exercise period of five years from the date of vesting to exercise their options.

The disclosure was made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The filing was submitted by Anand Kumar Das, Company Secretary of IndusInd Bank Limited.

Key Terms of the Grant