Shareholder's Services
Tax on Interim Dividend for Financial Year 2026-27
As per the Income-tax Act, 2025 of India, 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 Shareholders at 10% with valid Permanent Account Number (PAN) or at 20% with invalid PAN / inoperative PAN / without PAN and for Non-Resident Shareholders at the rates prescribed under the Income-tax Act, 2025 (i.e.20% plus applicable surcharge and cess) or tax treaty, read with Multilateral Instruments (MLI), if applicable. No withholding of tax is applicable if the dividend payable to Resident Individual Shareholders is up to ₹ 10,000 within a tax year.
As per Section 262 of the Income-tax Act, 2025, every person who has been allotted a PAN and is eligible to obtain Aadhaar number, shall be required to link the PAN with Aadhaar number. In case of failure to comply to this, the PAN so allotted is considered as inoperative and they shall be liable to all consequences under the Income-tax Act, 2025 and tax shall be deducted at a higher rate provided in Section 397(2) of the Income-tax Act, 2025, (i.e., at the rate specified in the relevant provision of this Act or at the rates in force or at 20%, whichever is higher).
The Board of Directors of Infosys Limited (“the Company”), in its meeting held on October 23, 2026, have declared an Interim dividend of ₹ 26/- per equity share.
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):
The Company has released a 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., November 03, 2026), the dividend receivable by you is taxable under the Income-tax Act, 2025 and accordingly the Company shall be obligated to deduct tax on the dividend payable to you as per the applicable provisions under the Income-tax Act, 2025.
Shareholders holding shares in dematerialized mode are requested to update their records such as tax residential status, PAN, registered email addresses, mobile number and other details with their relevant depositories through their depository participants (NSDL/CDSL). Shareholders holding shares in physical mode are requested to furnish details with 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 purpose of tax deducted at source (TDS). Therefore, we request shareholders to upload the relevant documents till October 28, 2026. Documents submitted after October 28, 2026 will not be considered for giving benefit of exempt/lower TDS. All documents submitted by you on or before October 28, 2026 will be verified and considered while deducting the appropriate taxes if relevant documents are in compliance and in accordance with the provisions of the Income-tax Act, 2025.
You are requested to communicate the changes, if any, to the documents already submitted for the tax year 2026-27, during the last dividend payout. If no such communication is received before the closure of portal (i.e. October 28, 2026), the tax documents submitted earlier, if any, will be considered for the purpose of tax deduction at source as per tax law. If during the tax year any of the above-mentioned tax forms becomes invalid, then tax would be deducted on total dividend payments made during the tax year 2026-27 at applicable prescribed rates under the Income Tax Act, 2025.
The shareholders are requested to go through the list of documents to be provided by each type of shareholder provided in the shareholder portal.
You can access the shareholder portal here: Link for the shareholder portal.
Instructions and guidelines for accessing the shareholder portal are available here: Link for instructions and guidelines.
Further, for the format of prescribed tax forms, click here.
Resident Individual Shareholders can alternatively submit Form 121 (Declaration for receipt of dividend without deduction of Tax) through their depository participants i.e. National Securities Depository Limited (NSDL) or Central Depository Services (India) Limited (CDSL). NSDL and CDSL have been enabled to accept Form 121 electronically. The steps for submitting form 121 in NSDL and CDSL are provided here. Accordingly, shareholders holding shares in dematerialized form may submit Form 121 directly through their respective depository participant on or before the document submission cut-off date, i.e. October 28, 2026.
Shareholders can reach us for clarification at dividend.tax@infosys.com.
