Corporate Governance
- Codes & Policies
- Disclosures
- Dividend
- Board & Committees
Dear Shareholders,
As per the provisions of Section 124(2) of the Companies Act, 2013, please find link for details regarding Unpaid Dividend. click here In case of any further clarification, you may write us on below email ID for unpaid dividend related matter. Email ID - mailto:einward.ris@kfintech.com/shareholders.relations@hdfcfund.com
TDS on dividend payment during financial year 2026-27 - Communication to shareholders
We would like to inform you that the Board of Directors of HDFC Asset Management Company Limited ('the Company') at its meeting held on Thursday, April 16, 2026, has recommended a Dividend of Rs. 54 per Equity Share of Rs. 5 each for the financial year ended March 31, 2026. The Board has fixed Friday, June 5, 2026, as the record date for determining entitlement of members to receive the Final dividend. The dividend, if approved by the Shareholders, will be paid within the prescribed period of 30 days from the date of the forthcoming Annual General Meeting scheduled to be held on Wednesday, June 24, 2026.
As per the Income-tax Act, 1961 (Act) as amended by the Finance Act, 2026, dividend paid and distributed by a Company is taxable in the hands of the Shareholders. Therefore, the Company is required to deduct tax at source (TDS), at the rates applicable on the amount distributed to the shareholders.
All Shareholders are requested to ensure that the details such as Permanent Account Number (PAN), residential status, category of Shareholder (e.g., Domestic Company, Foreign Company, Individual, Firm, LLP, HUF, Foreign Portfolio Investors / Foreign Institutional Investors, Government, Trust, Alternate Investment Fund - Category I, II or III, etc.), email id and address, bank mandate are updated, in their respective demat account(s) maintained with the Depository Participants. Please note that these details as available on the Record Date will be relied upon by the Company for the purpose of complying with the applicable withholding tax provisions.
The TDS/ Withholding tax provisions for both categories of shareholders viz. Resident and Non-Resident are detailed below:
I. Resident shareholders:
Tax will be deducted at source ("TDS") under Section 393(1) [Table Sr. No. 7] r.w.s 393(4) [Table Sr. No. 10] of the Act @ 10% on the amount of dividend payable unless exempt under any other provisions of the Act subject to the following conditions:
1. Valid PAN mandatorily required.
2. Shareholders holding shares under multiple accounts under different status/ category (e.g., Resident and Non-Resident) and single PAN, higher of the tax as applicable to the status in which shares held under a PAN will be considered on their entire holding in different accounts.
3. For shareholders who have not linked PAN and Aadhaar, the PAN will be considered as invalid and higher rate of taxes shall apply.
Please note that for the purpose of point 3 above, the company will undertake the verification from the Government enabled online facility and deduct TDS accordingly. Apart from the above, specific provisions applicable to Resident-Individuals and Resident Non-Individuals are given below for ready reference.
IA. Resident Shareholders (Individual(s)):
1. The TDS would not apply if the aggregate of total dividend paid to individual shareholders by the Company under folio(s) during FY 2026-27 does not exceed ₹10,000/-.
2. Tax will not be deducted at source in cases where a shareholder provides duly signed Form 121 (applicable to a resident individual), provided that the eligibility conditions as mentioned in the Income Tax Act are met.
Click here to download Form 121
3. Valid PAN mandatorily required. However, if the PAN is not updated or is invalid or is deleted or becomes inoperative on account of non-linking with Aadhaar then the higher rate as per the Act (i.e., 20%) would apply.
IB. Resident Shareholders (Other than Individual(s)):
The TDS for Resident shareholders (other than individuals) along with required documents are provided in Table below:
| Category of Shareholder | Tax Deduction Rate | Exemption Applicability/ Documents required |
|---|---|---|
| Insurance Companies | NIL | Documentary evidence that the provisions of Section 393(4) [Table Sr. No. 10] of the Act are not applicable to them
|
| Mutual Funds | NIL | Documentary evidence to prove that the mutual fund is a mutual fund specified under Section 11 of Schedule VII [Table Sr. No. 20] of the Act and is covered under Section 393(5) of the Act along with Self-declaration (Click here to download the format) |
| Alternative Investment fund (AIF) established/ incorporated in India | NIL | Documentary evidence that the person is covered by Notification No. 51/2015 dated June 25, 2015 by the Ministry of Finance (CBDT)
|
| Recognized Provident Fund | NIL | Self-attested copy of a valid order from Commissioner under Rule 3 of Part A of Fourth Schedule to the Act (OR) Self-attested valid documentary evidence (e.g., relevant copy of registration, notification, order, etc.) in support of the provident fund being established under a scheme framed under the Employees Provident Funds Act, 1952 needs to be submitted along with Self-declaration (Click here to download the format)
|
| Approved Superannuation Fund / Approved Gratuity Fund | NIL | Self-attested copy of valid approval granted by the Commissioner needs to be submitted: a) under Rule 2 of Part B of Fourth Schedule to the Act (In case of Approved Superannuation Fund) b) under Rule 2 of Part C of Fourth Schedule to the Act (In case of Approved Gratuity Fund) along with Self-declaration (Click here to download the format) |
| National Pension Scheme | NIL | Self-attested valid documentary evidence (e.g., relevant copy of registration, notification, order, etc.) granting approval to the Scheme along with Self-declaration (Click here to download the format) |
| Shareholders whose income is unconditionally exempt and covered under Schedule VII to Section 11 of the Income-tax Act, 2025 | NIL |
|
| Corporation established by or under a Central Act/ State Act which is, under any law for the time being in force, exempt from income- tax on its income including entities in which such corporations are the beneficial shareholders | NIL | Documentary evidence that the person is covered under section 393(5) of the Act along with self-declaration (Click here to download the format). |
| Order under section 395 of the Act | Rate provided in the order | Lower/NIL withholding tax certificate obtained from Income Tax authorities.
|
| Benefit under Rule 203 | Rates based on the status of the beneficial owners | In case where shares are held by Clearing Member/ intermediaries/ stock brokers and TDS is to be applied by the Company in the PAN of the beneficial shareholders, then intermediaries/ stock brokers and beneficial shareholders will have to provide a declaration (Click here to download the format) along with Appendix A(Click here to download the format). |
| Other resident shareholders without PAN/Invalid PAN/ Deleted PAN | 20% | - |
II. Non-resident Shareholders
In respect of Non-Resident Shareholders, Tax will be deducted at source under Section 393(2) [Table No. Sr. 17 and Sr. No. 15] of the Act @ 20% (plus applicable surcharge and cess) on the amount of dividend payable unless exempt under the provisions of the Act as given below:
| Category of Shareholder | Tax Deduction Rate | Exemption Applicability/ Documents required |
|---|---|---|
| Any non-resident shareholder (including Foreign Institutional Investors, Foreign Portfolio Investors (FII, FPI)) | 20% (plus applicable surcharge and cess) or Tax Treaty rate whichever is lower | As per Section 159 of the Act, a non-resident shareholder has an option to be governed by the provisions of the Double Taxation Avoidance Agreement ('DTAA') between India and the country of tax residence of the shareholder, if such DTAA provisions are more beneficial to such shareholder. To avail the DTAA benefits, the non-resident shareholder will have to compulsorily provide the following documents:
Application of beneficial DTAA rate shall depend upon the completeness and satisfactory review by the Company of the documents submitted by the Non-Resident shareholders. The Company will apply its sole discretion and is not obligated to apply the beneficial DTAA rates for tax deduction on dividend payable to shareholders. TDS shall be recovered at 20% (plus applicable surcharge and cess) if any of the above-mentioned documents are not provided. |
| Submitting Order under section 395 of the Act | Rate provided in the Order | Lower/NIL withholding tax certificate obtained from Income Tax authorities. |
Notes:
Shareholders holding shares under multiple accounts under different status/ category (eg. Resident and Non-Resident) and single PAN, may note that, higher of the tax as applicable to the status in which shares held under a PAN will be considered on their entire holding in different accounts.
2. Accordingly, in order to enable us to determine the appropriate TDS / withholding tax rate applicable, we request you to provide the documents as mentioned above on or before June 9, 2026. Shareholders are requested to note that while the submission of original forms are mandatory, they may submit the said documents online by clicking on the below link. No communication on the tax determination/deduction shall be entertained post June 9, 2026.
Click here to upload the documents.
It may be further noted that in case the tax on dividend is deducted at a higher rate in absence of receipt of the aforementioned details/documents from you, there would still be an option available with you to file the return of income and claim an appropriate refund, if eligible. No claim can/shall be made against the Company for such taxes deducted.
We will arrange to email the soft copy of TDS certificate to you at your registered email ID in due course, post payment of the dividend.
In case of any queries, you may contact our Registrar and Share Transfer Agent i.e., KFin Technologies Limited on einward.ris@kfintech.com or call them on 1800 309 4001.
Thanking you,
Yours faithfully,
For HDFC Asset Management Company Limited
Sonali Chandak
Company Secretary