Deduction of tax at source from the Final Dividend for the financial year 2025-26
The Board of Directors of ITC Limited (‘the Board’) at the Meeting held on 21st May, 2026 have recommended a Final Dividend of Rs. 8/- per Ordinary Share of Rs. 1/- each for the financial year ended 31st March, 2026. The Final Dividend is subject to declaration by the Members at the ensuing 115th Annual General Meeting of the Company, convened for 23rd July, 2026; such Dividend, if declared, will be paid between 24th July, 2026 and 29th July, 2026.
Together with the Interim Dividend of Rs. 6.50 per Ordinary Share declared by the Board on 29th January, 2026, the total Dividend for the financial year ended 31st March, 2026 would be Rs. 14.50 per Ordinary Share of Re. 1/- each.
Pursuant to the provisions of the Income-tax Act, 2025, dividend income is taxable in the hands of the shareholders and the Company is required to deduct tax at source (TDS), as applicable, from the dividend amount payable to shareholders.
I. Resident Shareholders
(1) No TDS shall be deducted from dividend payable to:
- Individual Shareholders (a) if the amount of dividend payable by the Company during the Tax Year, in aggregate, does not exceed Rs. 10,000/-, or (b) their income is below the taxable limit and a declaration is received by the Company in Form 121.
Click here to download Form 121
- Insurance Companies, Mutual Funds, domestic Alternative Investment Funds and other non-individual shareholders, subject to receipt of following documents from them by the Company:
| Category of Shareholders | Documents required |
|---|---|
Insurance Companies
| (i) A self-declaration that they are covered by the provisions of Section 393(4) of the Income-tax Act, 2025; (ii) Self-attested copy of registration certificate; and (iii) Self-attested copy of PAN. |
Mutual Funds
| (i) A self-declaration that they are eligible for exemption under Schedule VII of Section 11 of the Income-tax Act, 2025; (ii) Self-attested copy of registration certificate; and (iii) Self-attested copy of PAN. |
Domestic Alternative Investment Funds (AIF) | (i) A self-declaration that they are eligible for exemption under Schedule V of Section 11 of the Income-tax Act, 2025 and that they are established as Category I or Category II AIF under the SEBI regulations; (ii) Self-attested copy of registration documents; and (iii) Self-attested copy of PAN. |
Other non-individual resident shareholders | (i) A self-declaration that dividend receivable by them is exempt from tax under Section 393(5) or other relevant provisions of the Income-tax Act, 2025; and (ii) Self-attested copies of documents in support of the claim. |
(2) TDS shall be deducted from dividend:
- @ 10% where a valid Permanent Account Number (PAN), linked to Aadhaar, has been furnished to the Depository Participant (in case shares are held in dematerialised form) or to the Investor Service Centre (ISC) of the Company (in case shares are held in certificate form);
- @ 20% where a valid PAN has not been furnished.
II. Non-Resident Shareholders
(1) Non-resident shareholders may avail the benefit of tax treaty rate subject to eligibility under the applicable tax treaty and receipt of the following documents by the Company:
- Self-attested copy of Indian Tax Identification Number (PAN), if any;
- Self-attested copy of Tax Residency Certificate (TRC), covering the Tax Year 2026-27, issued by the tax authorities of the country of which the shareholder is a tax resident;
- Form 41, for the Tax Year 2026-27, generated electronically from the e-filing portal of the Income Tax Department;
- A self-declaration primarily covering the following:
- that the non-resident shareholder is eligible to claim the benefit of the respective Tax Treaty in the Tax Year 2026-27;
- that the non-resident shareholder receiving the dividend income is the beneficial owner of such income; and
- that the dividend income is not attributable / effectively connected to any Permanent Establishment (PE) or Fixed Base in India during the Tax Year 2026-27.
- that the non-resident shareholder is eligible to claim the benefit of the respective Tax Treaty in the Tax Year 2026-27;
- In case of shareholder being tax resident of Singapore, please furnish the letter issued by the competent authority or any other evidence demonstrating the non-applicability of Article 24 - Limitation of Relief under India-Singapore DTAA.
(2) TDS shall be deducted from dividend @ 20%, plus applicable surcharge and health & education cess or the applicable tax treaty, whichever is lower.
III. General instructions / information
(1) The Shareholders may send Form 121 or the Forms & Documents for availing the benefit of tax treaty rate to ISC on or before 9th July, 2026 either through e-mail at isc@itc.in or they may login at https://eform.itcportal.com to submit such documents electronically.
The aforesaid forms or documents, if found to be incomplete or received after 9th July, 2026, shall not be considered.
(2) Form 121 or the Forms & Documents for availing the benefit of tax treaty rate are required to be submitted afresh for the Final Dividend, even if such forms or documents, including the erstwhile Forms 15G / 15H, had been submitted earlier in respect of the Interim Dividend for the Financial Year 2025-26, paid on 27th February, 2026.
(3) No claim shall lie against the Company in respect of any taxes deducted at source in accordance with the applicable law.
(4) Where the dividend income as on the Record Date, i.e. 27th May, 2026, is assessable to tax in the hands of a person other than the registered shareholder, such as where shares are held by a clearing member, broker etc. on behalf of the actual beneficial owner, the registered shareholder shall furnish to the Company, on or before 9th July, 2026, a declaration in accordance with Rule 203 of the Income-tax Rules, 2026 providing details of the person to whom credit for TDS is to be given. No request in this regard shall be considered after 9th July, 2026.
Click here to download the Declaration Form
Should you have any query or require any assistance in the matter, please write to ISC at e-mail ID isc@itc.in or you may call ISC at telephone nos. 1800-345-8152 (toll free) or 033-2288 6426 / 0034.