Tax on Final Dividend 2024-25
As per Indian Income Tax Act, 1961 (“Act”) dividend paid and distributed by a company is taxable in the hands of shareholders. Thus, companies paying dividend are required to withhold tax at the applicable tax rates for Resident shareholder at 10% with valid Permanent Account Number (PAN) or at 20% without/invalid PAN and for Non-Resident shareholders at the rates prescribed under the Act or Tax Treaty, read with Multilateral Instruments, if applicable. No withholding of tax is applicable if the dividend payable to resident individual shareholders is up to Rs. 10,000 p.a. within a financial year.
As per Section 139AA of the Income Tax Act, every person who has been allotted a PAN and who is eligible to obtain Aadhaar, shall be required to link the PAN with Aadhaar. In case of failure to comply to this, the PAN allotted shall be deemed to be invalid/inoperative and he shall be liable to all consequences under the Act and tax shall be deducted at higher rates as prescribed under the Act.
The Board of Directors of Infosys Limited (the Company) in its meeting held on April 17, 2025, have recommended a final dividend of Rs. 22/- per equity share for the financial year ended March 31, 2025 subject to shareholders’ approval at the ensuing Annual General Meeting to be held on June 25, 2025.
As it is important for the Company to receive the relevant information and declarations from shareholders to determine the rate of tax deduction, the Company has sent out communications to shareholders as per the classification given below (please click below hyperlink for details):
Company has released the notification in the newspaper providing information about the record date for dividend. The same is available here. If you are a shareholder of the Company as on the record date (i.e., May 30, 2025), and the dividend receivable by you is taxable under the Income Tax Act, 1961, the company shall be obligated to deduct taxes at source on the dividend payable to you as per the applicable provisions under the Income Tax Act, 1961.
Shareholders holding shares in dematerialized mode, are requested to update their records such as tax residential status, permanent account number (PAN), registered email addresses, mobile numbers and other details with their relevant depositories through their depository participants and shareholders holding shares in physical mode are requested to furnish details to the Company’s registrar and share transfer agent KFin Technologies Limited.
The company has enabled a shareholder portal for shareholders to upload the relevant tax documents for purposes of tax deduction at source. We request shareholders to upload the relevant documents till June 06, 2025. No documents will be considered after June 06, 2025. We request shareholders to kindly take note of it accordingly.
The shareholders are requested to go through the list of documents to be provided by each types of shareholders provided at shareholder portal https://www.infosys.com/investors/shareholder-services/dividend-tax.html.
All the documents submitted by you on or before June 06, 2025, will be verified by us and we will consider the same while deducting the appropriate taxes if they are in accordance with the provisions of the Income Tax Act, 1961.
The shareholder portal is available here: Link for the shareholder portal.
Instructions and guidelines for the shareholder portal are available here. Link for instructions and guidelines.
Further, for the format of prescribed tax forms click here
Shareholder can reach us for clarification at dividend.tax@infosys.com
For information on taxes on previous dividends, please click here
