Muthoot Finance Explains Dividend TDS to Shareholders; Shares Down 0.53%

Mumbai, April 22: Muthoot Finance Limited has reached out to shareholders with a detailed note explaining how tax will be applied to its interim dividend, aiming to make the process easier to understand under the revised tax regime.

The company said in an exchange filing that it had declared an interim dividend of ₹30 per share for the financial year 2025-26 at its Board meeting held on April 10, 2026. The payment will be made to eligible shareholders based on records as of April 17, 2026.

It lays out, in simple terms, who pays how much tax and under what conditions. For resident individuals, there will be no tax deduction if total dividend income stays within ₹10,000 for the year. Cross that mark, and a 10% deduction applies, provided PAN details are correctly updated.

The company has also flagged a common oversight. If PAN details are missing or invalid, the deduction jumps to 20%, which could significantly impact the payout investors actually receive.

At the same time, Muthoot Finance has outlined ways to avoid higher deductions. Shareholders who qualify can submit relevant forms or certificates to claim lower or even zero tax deduction. This includes provisions for certain individual declarations as well as institutional investors such as mutual funds and insurance companies, subject to documentation.

Stock Market Snapshot

Muthoot Finance share price was quoted at ₹3,591.00, down 0.53% as of 15:22 IST on April 22, 2026.

The stock moved within a narrow range during the session, with mild selling pressure visible in the afternoon. Since the update is largely procedural, the market reaction remained limited, with investors focusing more on broader cues than this compliance-related announcement.

Company Background

Muthoot Finance is one of India’s leading non-banking financial companies, best known for its gold loan business. It has built a strong presence across urban and semi-urban markets, offering quick, asset-backed lending solutions.

Over time, the company has expanded into adjacent segments such as microfinance and housing finance. Its consistent dividend payouts and stable operating model have helped maintain steady investor interest.

Conclusion

The clarification removes uncertainty around how much shareholders will actually receive after tax.

For investors, the takeaway is straightforward. Ensuring PAN details and required documents are in place can prevent unnecessary deductions.

Source:

• https://www.nseindia.com/get-quote/equity/MUTHOOTFIN/Muthoot-Finance-Limited
• https://nsearchives.nseindia.com/corporate/MUTHOOTFIN_22042026125223_MFIN_Dividend_TDS_Communication_sd.pdf