Tax on Interim Dividend for FY 2025-26
As per the Indian Income-tax Act, 1961 (“the Act”), dividend paid and distributed by a company is taxable in the hands of the shareholders. Thus, companies paying dividends are required to withhold tax at the applicable tax rates for Resident Shareholders 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 tax shall be deducted from resident individual shareholders if the total of all dividends during the financial year 2025-26 does not exceed Rs. 10,000.
As per Section 139AA of the 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 with 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 the higher rates as prescribed under the Act.
The Board of Directors of Infosys Limited (“the Company”) in its meeting held on October 16th, 2025, have recommended an interim dividend of Rs.23/- 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., October 27th, 2025), and the dividend receivable by you is taxable under the Act, the Company shall be obligated to deduct taxes at source on the dividend payable to you as per the applicable provisions under the Act.
Shareholders holding shares in dematerialized mode are requested to update their records such as tax residential status, 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 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 purposes of tax deduction at source. We request shareholders to upload the relevant documents for the Interim Dividend FY2025-26 till October 24th, 2025. No documents with respect to the Interim Dividend will be considered after October 24th, 2025. We request shareholders to kindly take note of it accordingly. In case of non-submission of any tax documents by the shareholders, tax deduction at source will be done at the standard prescribed rates under the Act.
The shareholders are requested to go through the list of documents to be submitted as per type of shareholder provided on the shareholder portal at https://www.infosys.com/investors/shareholder-services/dividend-tax.html.
All documents with respect to the Interim Dividend submitted by you on or before October 24th, 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 Act.
Click here to visit the shareholder portal.
The instructions and guidelines to access the shareholder portal are available here. Link for instructions and guidelines.
For the format of prescribed tax forms, click here
Shareholder can reach us for clarification at dividend.tax@infosys.com
