Tata Chemicals Limited has announced that its Board of Directors, at their meeting held on May 4, 2026, has recommended a dividend of ₹11 per ordinary share of ₹10 each (110%) for the financial year ended March 31, 2026. The dividend is subject to shareholder approval at the 87th Annual General Meeting (AGM) scheduled for Friday, June 26, 2026. In connection with this, the company has communicated to shareholders the requirement to submit tax-related documents by Monday, June 8, 2026, to ensure appropriate tax deduction at source (TDS) on the dividend payment.
Dividend and Tax Framework
Pursuant to the Income-tax Act, 2025, dividend income is taxable in the hands of shareholders, and Tata Chemicals is required to deduct tax at source at the time of payment. To determine the correct withholding rate, shareholders must submit specific forms and declarations before the June 8, 2026 deadline. The company intimated the stock exchanges regarding these tax deduction formalities on May 15, 2026. Exemption forms, including Form 121, Form 41, treaty exemption documents, and declaration formats, are available for download on the company's website.
TDS Rates for Resident Shareholders
The applicable TDS rates for resident shareholders vary based on documentation and PAN status. The following table summarises the key rates:
| Category |
TDS Rate |
| Dividend up to ₹10,000 |
Nil |
| Form 121 submitted with PAN linked to Aadhaar |
Nil |
| Valid PAN provided |
10% |
| PAN not provided / invalid / PAN-Aadhaar linking not done |
20% plus applicable surcharge and cess |
Resident individual shareholders may submit Form 121 electronically through their respective depositories — National Securities Depository Limited (NSDL) or Central Depository Services (India) Limited (CDSL). Shareholders are advised to ensure their Aadhaar number is linked to their PAN, as failure to do so will render the PAN invalid or inoperative, resulting in TDS at the higher rate of 20%.
Resident non-individual shareholders such as Insurance Companies, Mutual Funds, Alternative Investment Funds (AIFs), and New Pension System (NPS) Trusts may claim exemption by submitting relevant self-declarations, self-attested PAN copies, and applicable registration certificates. Shareholders holding shares under multiple accounts under different status or category with a single PAN should note that the higher applicable tax rate will be considered on their entire holding.
Guidelines for Non-Resident Shareholders
For non-resident shareholders, including Foreign Institutional Investors (FIIs) and Foreign Portfolio Investors (FPIs), the standard withholding tax rate is 20% plus applicable surcharge and cess. However, beneficial tax treaty rates may apply if the required documents are submitted by the deadline. The following table outlines the documentation required to claim Double Tax Avoidance Agreement (DTAA) benefits:
| Document Required |
Details |
| PAN Card |
Self-attested copy; if unavailable, furnish name, contact, tax ID, and country address |
| Tax Residency Certificate (TRC) |
For Tax Year 2026-27, from country of residence |
| No Permanent Establishment Declaration |
Self-declaration for Tax Year 2026-27 |
| Form 41 |
Filed electronically via income tax e-filing portal |
The company has noted that it is not obligated to apply beneficial treaty rates at the time of withholding, and application of such rates is subject to completeness and satisfactory review of submitted documents.
Document Submission Process
Shareholders must upload or email the relevant documents on or before Monday, June 8, 2026. Documents submitted after this date will not be considered for tax treaty benefits or exemptions. The submission details are as follows:
In the absence of receipt of complete details or documents by the deadline, tax on the dividend will be deducted at the prescribed rate. Shareholders may, however, file their income tax return to claim an appropriate refund if eligible. Tax credit can be viewed in Form 168 on the TRACES portal or the income tax e-filing website. Shareholders are also requested to ensure their bank account details in their demat accounts are updated to enable timely credit of the dividend.