Timken India Recommends Dividend of Rs 2.50 Per Share for FY26, Details Tax Withholding Structure

Timken India Recommends Dividend of Rs 2.50 Per Share for FY26, Details Tax Withholding Structure​

Timken India Limited announced that its Board of Directors had recommended a dividend of Rs 2.50 per equity share for the financial year ended March 31, 2026. The recommendation is subject to approval by Members at the upcoming 39th Annual General Meeting (AGM).

The company confirmed that shareholders would be required to have tax deducted at source (TDS) on the dividend in line with the provisions of the Income Tax Act, 2025.

The recommended payment pertains to equity shares with a face value of Rs 10 each, which are fully paid up.

Dividend and TDS Structure Summary​

Timken India provided specific guidelines regarding the tax deduction and withholding rates for different classes of shareholders, including resident individuals, non-resident payees, and other institutional categories.

Key aspects of the dividend payment and taxation structure include:

• Resident Individuals: Tax is to be deducted at source (TDS) at a rate of 10% on the dividend amount if a valid Permanent Account Number (PAN) is provided by the shareholder. If PAN is not submitted or is invalid, TDS will be deducted at 20%. No tax deduction applies to resident individuals if the total aggregate dividend paid during the Tax Year 2026-27 does not exceed Rs 10,000/- and the shareholder submits a written declaration in prescribed Form 121.
• Resident Non-Individuals: For specific classes of residential shareholders, such as Insurance Companies, Mutual Funds, AIFs, or corporations exempt from income tax under a Central Act, zero tax deduction (Nil rate) applies provided sufficient documentary evidence is submitted to the satisfaction of the Company.
• Non-Resident Shareholders: Tax withholding for non-resident payees is set at 20% (plus applicable surcharge and cess). Non-resident shareholders have the option to avail benefits under a Double Tax Avoidance Agreement (DTAA) if it is more beneficial, provided they supply specific documentation.

The company mandated that all shareholders submit necessary tax-related documents by August 8, 2026, to enable the determination of the appropriate TDS or withholding tax rate. Shareholders were advised that any tax determined at a higher rate in the absence of required details still retain an option to claim an appropriate refund when filing their income tax returns.

TIMKEN Stock Price Movement​

Timken India Limited shares today slipped by 2.59% to settle at ₹3260.9, shedding ₹86.70 in the post-market session. The equity traded on a volume of 71,415 shares during the trading day.