P&G Hygiene declares Rs 60 final dividend for FY26
Procter & Gamble Hygiene and Health Care Limited announced a final dividend of Rs 60 per share for FY26, pending AGM approval. The disclosure detailed TDS implications for residents and non-residents, with rates ranging from nil to 20% based on PAN status and treaty benefits. Shareholders must submit forms like Form 121 and Form 41 by August 14, 2026, to ensure correct tax deduction.
*this image is generated using AI for illustrative purposes only.
Procter & Gamble Hygiene and Health Care has declared a final dividend of Rs 60 per equity share of face value Rs 10 each for the financial year 2025-26. The payout is subject to approval at the ensuing Annual General Meeting. Shareholders whose names appear in the Register of Members or depository records on the record date will be eligible to receive the dividend.
The company informed the exchanges that dividend income is taxable in the hands of shareholders under the Income Tax Act, 2025, and the Finance Act, 2026. Consequently, the company is required to deduct tax at source (TDS) on the distribution. The applicable TDS rates vary based on the shareholder's residential status and the documentation provided.
Resident Shareholders
For resident shareholders, the TDS rate is determined by specific criteria regarding the dividend amount and the validity of Permanent Account Number (PAN) details. The company will use a compliance check utility to verify PAN status.
| Particulars | Applicable Rate | Documents Required |
|---|---|---|
| Total dividend does not exceed INR 10,000 | Nil | - |
| Valid Form 121 furnished | Nil | Duly signed Form 121 with income tax return details for previous two years |
| PAN is available | 10% | PAN updated with depositories or Registrar and Transfer Agent |
| PAN is not available or invalid | 20% | - |
| LIC, GIC, or other insurers (Section 194 exempt) | Nil | Self-attested copy of valid IRDAI registration certificate |
| Persons covered under Section 393 (e.g., Mutual Funds) | Nil | Self-attested copy of valid SEBI registration certificate |
| Lower or NIL withholding tax certificate (Order u/s 395) | Rate provided in the Order | Certificate obtained from tax authority |
| Category I and II Alternative Investment Fund | Nil | Self-attested copy of valid SEBI registration certificate |
Non-Resident Shareholders
Non-resident shareholders, including Foreign Institutional Investors (FII) and Foreign Portfolio Investors (FPI), are subject to a TDS rate of 20% plus applicable surcharge and cess. However, this rate may be lower if the Double Taxation Avoidance Agreement (DTAA) rate is applicable, provided the necessary documents are submitted.
To avail DTAA benefits, non-resident shareholders must submit a self-attested copy of their PAN, a Tax Residency Certificate, Form 41 filed electronically on the Indian Income Tax Portal, and a self-declaration confirming tax residency and beneficial ownership. The company clarified that it is not obligated to apply beneficial DTAA rates if the documentation is incomplete or unsatisfactory.
Compliance and Deadlines
Shareholders must submit required forms and documents for the financial year 2026-27 to claim exemption from tax deduction. The deadline for submission is August 14, 2026. Forms can be submitted via the Registrar and Transfer Agent's website or email. Incomplete or unsigned documents received after this deadline will not be considered.
The company also noted that under Section 262 of the Income Tax Act, failure to link PAN with Aadhaar results in the PAN being deemed invalid. In such cases, TDS will be deducted at 20% or the rate in force, whichever is higher. Shareholders are advised to update their bank details and email addresses with their depositories or the Registrar and Transfer Agent to facilitate electronic remittance and communication.
Historical Stock Returns for P&G Hygiene and Health Care
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.27% | +1.81% | -5.66% | -28.22% | -31.87% | -30.62% |
How might the stringent TDS compliance requirements impact foreign investor sentiment towards P&G Hygiene and Health Care stock?
Could the high TDS rate for invalid PANs drive a significant increase in shareholder PAN-Aadhaar linking before the record date?
What is the likelihood of the company maintaining this dividend payout ratio in the next fiscal year given the tax changes?
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