TCS Q3 Interim Dividend: IT Major Declares Rs. 67 Special Dividend; Is Interim Dividend Taxable?

Tata Consultancy Services

TCS Q3 Interim Dividend: IT Major Declares Rs. 67 Special Dividend; Is Interim Dividend Taxable?

January 14, 2023: New Delhi: Tata Consultancy Services, India’s largest IT services company by revenue, on Monday announced an interim and special dividend to its shareholders.

TCS, in its meeting held on Monday, January 9, announced Rs. 8 third interim dividend and Rs. 1 per equity share of Rs. 67 declared a special dividend.

“We would like to inform you that in the board meeting held today (Monday, January 9), the directors have approved a third interim dividend of Rs 8 and Rs 1 per equity share of the company. 67 has declared a special dividend. TCS said in an exchange filing on Monday.

TCS Interim Dividend Payment Date

TCS will pay the third interim dividend and special dividend on February 3 next month to its equity shareholders whose names appear on the company’s register of members or in the records of depositories as beneficial owners of shares on January 17, 2023, the record date fixed for the purpose.

The total payout to shareholders of the IT major during the current financial year till date stood at Rs. 33,297 crores.

TCS, India’s largest IT firm by revenue, declared an interim and special dividend after reporting a consolidated net profit of Rs 10,846 crore for the December 2022 quarter, up 11 percent.

The company’s operating margin was 24.5 percent during October-December 2022, a contraction of 50 basis points.

Is interim dividend taxable?

Any dividend income received is taxable as per Indian Income Tax Act, 1961. Dividends paid and distributed by the company are taxable in the hands of shareholders.

Thus, dividend paying companies are required to withhold tax at the applicable tax rates for a resident shareholder at the rate of 10 percent if the total amount of dividends distributed or paid to the shareholder during the financial year exceeds Rs. exceeds 5,000.

For non-residents, it is usually deducted at 20 percent plus applicable cesses and surcharges. However, if the dividend payable to resident individual shareholders in a financial year is Rs. 5,000, no tax deduction will be applicable.

No tax shall be deducted on dividends paid or payable to Life Insurance Corporation of India (LIC), General Insurance Corporation of India (GIC) or any other insurance company.

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