Bajaj Finance Declares Special Dividend of Rs 12 Per Share – TDS Rules Explained

Bajaj Finance Ltd has announced a special dividend of Rs 12 per share, which is 600% of the face value. This one-time dividend will be paid to eligible shareholders whose names appear in the company’s records as of the record date – May 9, 2025.

The dividend will be credited to shareholders’ accounts on May 26, 2025.

Important Deadline for Shareholders

To ensure correct tax deductions, shareholders must update their PAN and other KYC details by May 14, 2025, especially if they want to avail of any lower TDS rate or exemption.

TDS (Tax Deducted at Source) Rules for Dividend

The company will deduct tax at source (TDS) as per the Income Tax Act, based on the shareholder’s status:

For Resident Shareholders

PAN available & valid: 10% TDS

No PAN / Invalid PAN: 20% TDS

Form 15G/15H submitted: No TDS, if eligible (only for individuals/HUFs below taxable limit)

Exemption certificates (e.g., under Section 197): No or reduced TDS based on approval

For Non-Resident Shareholders (including FPIs, NRIs)

TDS will be deducted at 20% or the rate specified under the applicable Double Taxation Avoidance Agreement (DTAA), whichever is lower, subject to submission of valid tax documents, such as:

Form 10F

Tax Residency Certificate (TRC)

Declaration of beneficial ownership

Key Note:

If a shareholder does not submit the required documents in time, higher TDS may be deducted, and refunds must be claimed later through an income tax return.

Action Required by Shareholders

Update PAN, residency status, and other KYC details with the Depository/Registrar

Submit TDS exemption forms (if eligible) like Form 15G/15H or lower deduction certificate

For NRIs, submit TRC, Form 10F, and DTAA declarations

Deadline for submission: May 14, 2025

Stay informed and ensure compliance to avoid higher tax deduction.