Timken India has detailed the tax deduction at source (TDS) norms for the recommended dividend of Rs 2.50 per equity share for the financial year ended March 31, 2026. The dividend is subject to shareholder approval at the 39th Annual General Meeting. The company specified that tax will be deducted in accordance with the Income Tax Act, 2025, with rates varying based on the shareholder's residency status and documentation submitted.

Resident individuals must provide a valid Permanent Account Number (PAN) to ensure a 10% TDS rate; failure to provide a valid PAN will result in a 20% deduction. No tax will be deducted if the aggregate dividend does not exceed Rs 10,000 or if a valid declaration in Form 121 is submitted. Certain resident non-individual entities, such as insurance companies and mutual funds, may qualify for a nil rate upon submitting specific documentary evidence and self-declarations.

Non-resident shareholders and foreign companies are subject to a withholding tax of 20%, plus applicable surcharge and cess. They may opt for beneficial rates under the Double Tax Avoidance Agreement (DTAA) by providing documents including a Tax Residency Certificate and Form 41. The company emphasized that the application of beneficial DTAA rates depends on the satisfactory review of submitted documents.

Key Meeting and Tax Details

Shareholders must submit necessary tax-related documents to the Registrar and Transfer Agent by August 8, 2026, to ensure the correct TDS rate is applied. The company stated that no requests for tax revision will be entertained once the TDS is deducted based on available records. The communication was signed by Sujit Kumar Pattanaik, Business Controller - India, Chief Financial Officer & Whole-time Director.

The Gujarat High Court has upheld a Labour Court order directing Timken India to pay regular wages to a former employee from January 2005 until the date of superannuation. The order pertains to a labour dispute involving Antifriction Bearings Corporation Limited, which amalgamated with Timken India, and former employee Anil Ambalal Modi. The company is currently assessing the financial impact of the judgment and has indicated it is likely to file an appeal against the order passed on June 17, 2026.

The dispute originated from the termination of Mr. Modi's employment on November 22, 1995. Following a failed conciliation, the matter was referred to the Labour Court, which in 2005 ruled the termination illegal and awarded back wages at 65% with a direction for reinstatement. The management appealed this decision, arguing that the workman had instigated other employees to undertake a go-slow, leading to a production drop. However, the court found no evidence to substantiate the allegation that Mr. Modi, who was an Account Clerk, had instigated the workers.

The High Court affirmed the findings of the Labour Court and the Single Judge, noting that the termination was not preceded by an inquiry. The bench observed that the management had previously settled similar matters with other employees dismissed during the same period. Consequently, the court dismissed the appeals filed by both the management and the workman.

The court directed the management to pay the same salary that Account Clerks were entitled to from January 2005 until the workman attained superannuation. This payment must account for all increments and enhancements provided to regular Account Clerks during that period. The company is entitled to deduct wages already paid under Section 17(B) of the Industrial Disputes Act, 1947, and wages paid from September 2016, when the workman was reinstated. The due amount shall be computed and made over to the workman within a period of six weeks from the date of receipt of the copy of this order.

Timken India has informed the exchanges that the computation of the financial liability is in progress and will take some time. The company stated that it intends to challenge the present order.