Automotive Axles Recommends Final Dividend of Rs. 32 Per Share For FY 2025-26, Announces TDS Guidelines
Automotive Axles Limited announced that its Board of Directors recommended a final dividend for the financial year ended March 31, 2026. The dividend recommendation stands at Rs. 32/- (representing 320%) per Equity Share, which is based on a face value of Rs. 10/- per share fully paid-up.The recommendation was made by the Board of Directors during a meeting held on May 19, 2026. The dividend is subject to shareholder approval at the forthcoming 45th Annual General Meeting (AGM), scheduled for Wednesday, August 12, 2026. The record date set for determining shareholders eligible to receive the dividend is Wednesday, August 5, 2026.
The company stated that if approved at the AGM, the dividend will be paid to qualifying shareholders exclusively in electronic mode.
Tax At Source (TDS) on Dividend Payments
As per the provisions of the Income Tax Act, 2025, dividends distributed by the Company are taxable in the hands of the Shareholders. Consequently, Automotive Axles Limited is required to deduct tax at source (TDS) upon the payment of this Final Dividend. The rate applicable for withholding tax will vary based on the residential status of the shareholder and the supporting documentation provided to the Company.TDS Applicable Rates for Resident Shareholders
The company outlined specific TDS rates and document requirements for resident shareholders:| Particulars | Applicable Rate | Documents required (if any) |
|---|---|---|
| Shareholders having PAN | 10% | Update the PAN, and residential status as per Income Tax Act, 2025 if not already done, with the depositories (in case of shares held in demat mode) and with the Company's Registrar and Transfer Agent (in case of shares held in physical mode). |
| Shareholders having PAN | NIL | Form 121 (erstwhile Form 15G) / Form 121 (erstwhile Form 15H) for those above 60 years, provided all eligibility conditions are met and a self-attested copy of PAN is furnished. |
| Shareholders not having/furnished PAN/ Invalid PAN | 20% | - |
| Shareholders submitting the Order under Section 395 of the Income Tax Act, 2025 | Rate provided in the Order | Lower/NIL withholding tax certificate obtained from tax authority along with self-attested copy of PAN. |
| Shareholders (e.g., LIC, GIC) for whom Section 393(1) of the Act is not applicable | NIL | Declaration that it has full beneficial interest with respect to the shares owned by it along with self-attested copy of PAN. |
The company requested resident shareholders to ensure their Aadhaar Number is linked with their PAN, noting that failure to do so may result in the PAN being considered inoperative or invalid and TDS being deducted at 20%.
TDS Applicable Rates for Non-Resident Shareholders
Non-resident shareholders have the option of being governed by the Double Tax Avoidance Agreement (DTAA) between India and their country of residence, if it is more beneficial. The rates are as follows:| Particulars | Applicable Rate | Documents required (if any) |
|---|---|---|
| Shareholders, being Foreign Institutional Investors (FIIs) / Foreign Portfolio Investors (FPIs) | 20% (plus applicable surcharge and cess) or Tax Treaty Rate (whichever is lower) | Self-attested copy of PAN, Self-attested copy of Tax Residency Certificate (TRC), Form 41 filed electronically with income tax authorities, Self-declaration about having no Permanent Establishment in India, Self-declaration of Beneficial ownership. |
| Other Non-Resident Shareholders | 20% (plus applicable surcharge and cess) or Tax Treaty Rate (whichever is lower) | Self-attested copy of PAN, Self-attested copy of Tax Residency Certificate (TRC), Form 41 (erstwhile Form 10F) filed electronically with income tax authorities, Self-declaration about having no Permanent Establishment in India, Self-declaration of Beneficial ownership. |
| Shareholders submitting the Order under Section 395 of the Income Tax Act, 2025 | Rate provided in the Order | Lower/NIL withholding tax certificate obtained from tax authority. |
For shareholders without a PAN, the company requested non-resident individuals (other than companies) to furnish their name, email ID, contact number, address in the residency country, and the Tax Identification Number of the residency country.
Documentation Deadline
Shareholders were advised that proper documentation is required to determine the appropriate TDS/withholding tax rate. All necessary forms must be submitted through the designated web link on or before Wednesday, August 5, 2026, till 05:00 PM (IST). If taxes are deducted at a higher rate due to incomplete details or failure to submit required documents by this deadline, shareholders may claim an appropriate refund in their income tax return.The Company assured that it will send a copy of the TDS certificate to all shareholders post-payment.
AUTOAXLES Stock Price Movement
Automotive Axles Limited shares today slipped by 0.53% to settle at ₹1773.20, as the stock traded within an intraday range of ₹1760.80 and ₹1787.40.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
The information provided is for general informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. Readers are advised to rely on their own assessment and judgment and consult appropriate financial advisers, if required, before taking any investment-related decisions.
Any views, opinions, or statements expressed, where applicable, are those of the respective analysts or experts and do not reflect the views of this website. The website has no association with such viewpoints and does not assume any responsibility for them.
Last edited by a moderator: