PNB Housing Finance Recommends Rs 8 Dividend Per Share, Outlines TDS Structure for FY2025-26

PNB Housing Finance Recommends Rs 8 Dividend Per Share, Outlines TDS Structure for FY2025-26​

PNB Housing Finance Limited has announced a recommendation for a final dividend of Rs 8 per equity share for the financial year ended March 31, 2026. This payment is subject to approval by shareholders at its forthcoming Annual General Meeting (AGM) scheduled for August 17, 2026.

The Company notified stakeholders regarding the distribution of this dividend, confirming that as per the Income Tax Act, 2025, any dividend paid or distributed is taxable in the hands of the shareholders. Consequently, PNB Housing Finance Limited is required to deduct Tax Deducted at Source (TDS) from the dividend paid, contingent on shareholder approval at the AGM.

TDS Guidelines for Shareholders​

The tax deduction rates are determined based on the residential status and documentation provided by the shareholders. The Company has outlined specific guidelines covering resident and non-resident categories regarding TDS.

For Resident Shareholders​

Taxation for resident shareholders is guided by their PAN status:

• 10% Rate: If the shareholder possesses a valid Permanent Account Number (PAN).
• 20% Rate: If the shareholder does not have a PAN, or if their PAN is invalid or not linked with Aadhaar.

There are exemptions and specific rates for various resident categories, as detailed below:

For Non-Resident Shareholders​

Non-resident shareholders have two primary options for tax withholding:

1. Domestic Tax Law: TDS must be withheld at a rate of 20% (plus applicable surcharge and cess) on the dividend amount payable.
2. Double Tax Avoidance Agreement (DTAA): Non-residents may choose to operate under the provisions of the relevant DTAA, if it is more beneficial than domestic law. To avail DTAA benefits, shareholders must provide a Tax Residency Certificate (TRC), PAN, and e-filed Form 41.

The company noted that for Foreign Institutional Investors (FII) and Foreign Portfolio Investors (FPI), tax deduction will be at 20% (plus surcharge and cess) or as per the applicable DTAA, whichever is more beneficial.

Document Submission Deadline​

All shareholders are requested to submit the necessary documentation—including forms related to TDS and category declarations—to the Company on or before Saturday, August 8, 2026.

It was noted that for shareholders holding shares under multiple accounts with different statuses, the higher of the tax applicable to those statuses will be considered on their entire holdings. Shareholders who furnish a valid Nil or lower tax rate deduction certificate can have TDS applied according to the rates specified in such a certificate.

PNBHOUSING Stock Price Movement​

As of 2:46 PM, shares of PNB Housing Finance Limited shed value in live trading, slipping 2.10% and currently trading at ₹1034.1. The stock has seen substantial movement in the market, with 744,024 shares transacting so far into the session.