3M India Limited , a diversified technology company, has successfully resolved its long-standing tax disputes with the Indian tax authorities. The company has opted for a resolution plan to settle tax disputes spanning from the financial year 2004-05 to 2013-14, with the tax amount fixed at ₹19.40 crore as part of this settlement arrangement.

Direct Tax Vivad Se Vishwas Scheme

The settlement was made possible through the 'Direct Tax Vivad Se Vishwas Scheme, 2024,' introduced by the Finance (No. 2) Act, 2024. This scheme aims to settle tax disputes and reduce litigation. 3M India chose to participate in this scheme to resolve several open tax litigations for the specified period.

Settlement Details

According to the latest corporate filing, 3M India has received a Certificate in Form 2 from the Principal Commissioner of Income Tax, Bengaluru - 2, for the financial year 2011-12. This certificate, received on July 23, 2025, determines the amount payable, adjusted, or refundable under the scheme.

Financial Year 2011-12 Settlement

For the financial year 2011-12 alone, 3M India had filed two separate applications to settle distinct tax disputes:

1. The first application was previously accepted, and the company had already communicated the issuance of the first Form 2 to the stock exchanges.
2. The second application has now been accepted, with the Principal Commissioner of Income Tax issuing the second Form 2 for FY 2011-12.

Tax Payable

As per the second Form 2 received for FY 2011-12, after adjusting for amounts already paid against tax arrears, the tax payable by 3M India is determined to be ₹1.94 crore.

Other Financial Years

3M India has also received Form 2 certificates for several other financial years, including:

• FY 2004-05
• FY 2009-10
• FY 2010-11
• FY 2012-13
• FY 2013-14

These settlements have been previously communicated to the stock exchanges.

Ongoing Process

The company noted that applications for the settlement of certain disputes for other financial years are still under review by the Designated Authority.

Impact on Company Operations

3M India has stated that there is no material impact on its operations or activities concerning this tax settlement.

The resolution of these tax disputes marks a significant step for 3M India in clearing its tax liabilities and potentially reducing future litigation costs. This move aligns with the government's initiative to simplify the tax dispute resolution process and promote a more business-friendly environment.

3M India Ltd. , a prominent player in the Indian manufacturing sector, has made a significant announcement that is set to reward its shareholders handsomely. The company has declared a substantial total dividend of Rs 695 per equity share for the fourth quarter.

Dividend Breakdown

The total dividend of Rs 695 per share is composed of two parts:

1. Final Dividend: Rs 160.00 per share
2. Special Dividend: Rs 535.00 per share

This generous dividend declaration underscores the company's strong financial position and its commitment to delivering value to its shareholders.

Financial Implications

The dividend announcement carries significant financial implications:

• Total Distribution: 3M India plans to distribute Rs 782.00 crore to its shareholders in this quarter.
• Shareholder Value: This substantial payout is likely to be well-received by the company's investors, potentially boosting shareholder confidence and the stock's attractiveness.

Market Impact

While the specific market reaction remains to be seen, such a large dividend announcement often has positive implications for a company's stock price. Investors typically view generous dividend policies favorably, especially when they include special dividends, as it signals the company's financial health and management's confidence in its future prospects.

Looking Ahead

As 3M India prepares to distribute this significant dividend, investors and market analysts will be keenly watching for any further announcements or insights into the company's financial performance that led to this decision. The substantial special dividend, in particular, may prompt questions about the company's cash reserves, future investment plans, and overall financial strategy.

This dividend announcement marks a notable event for 3M India and its shareholders, reflecting the company's strong financial position as it concludes the fourth quarter.