Muthoot Finance Declares Interim Dividend of Rs. 30 Per Equity Share, Outlining TDS Structure
Muthoot Finance Limited announced that its Board of Directors, during a meeting held on April 10, 2026, declared an interim dividend of Rs. 30 per equity share for the financial year 2025-26.The interim dividend is set to be paid to shareholders based on the beneficial ownership details furnished by the Depositories. For shares held in physical form, payment will be made to members whose names appear on the Register of Members of the Company as on the close of business hours on Friday, April 17, 2026.
The company noted that, in accordance with the provisions of the Income-tax Act, 2025, which replaced the Income-tax Act, 1961, effective April 1, 2026, the company is required to apply withholding tax, or deduct taxes at source (TDS), on the dividend paid. The applicable withholding tax rate varies depending on the residential status of the shareholder and the documentation submitted.
TDS Provisions for Resident Shareholders
For resident shareholders, the applicable TDS rates depend on the shareholder's status and compliance with the Income-tax Act, 2025:| Particulars | Rate | Documents Required |
|---|---|---|
| Resident individual members (if dividend paid does not exceed Rs. 10,000/-) | Nil | NA |
| Shareholders With valid PAN | 10% | Update/Verify the PAN, and residential status as per Income-tax Act, 2025 |
| Shareholder without PAN / with Invalid PAN | 20% | NA |
| Shareholder Submitting Form no. 121 | Nil | Declaration in Form 121 |
| Mutual Fund specified under Schedule VII of the Act | 10% / NIL (if documents are filed) | A declaration that they are governed by the provisions of section 11 [schedule VII (20)/(21)] |
| Alternative Investment Fund (AIF) established in India | Nil | A declaration that their income is exempt under section 11 [schedule V (1)] |
TDS Provisions for Non-Resident Shareholders
The deduction of tax for non-resident shareholders is outlined as follows:| Particulars | Rate | Documents Required |
|---|---|---|
| Non-resident shareholders (including FIIs/FPIs) | 20% (plus applicable surcharge and cess) OR Tax Treaty Rate (whichever is lower) | Update/Verify the PAN and residential status. To apply the Tax Treaty rate, Tax Residency Certificate (TRC) and Copy of Form 41 are required. |
| Shareholder submitting Order under section 395 of the IT Act | Rate provided in the Order | Lower/NIL withholding tax certificate obtained from tax authority to be submitted. |
The company stipulated that the application of beneficial DTAA rates depends upon the completeness and satisfactory review of the documents submitted by the Non-Resident member.
Shareholders are advised that keeping accurate records is critical. Failure to provide a valid Permanent Account Number (PAN) will result in tax being deducted at a higher rate of 20%, as per the provisions of the Act. The company recommends shareholders to ensure that their Aadhaar number is linked with their PAN.
MUTHOOTFIN Stock Price Movement
As of 12:42 PM, shares of Muthoot Finance Limited are slipping by 0.12% in live trading, currently trading at ₹3605.9. The equity is maintaining a significant volume of 244,608 shares, holding well above its day low of ₹3577.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.
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