Updates

Ref No. GIL/CFD/SEC/27/053/SE 29th June 2026 BSE Limited National Stock Exchange of India Limited Scrip Code: 500300 Symbol: GRASIM Dear Sir/Madam, Sub: Deduction of tax at source on dividend – Shareholders Communication This is in reference with the provisions of the Income tax Act, 2025 with respect to dividend income being taxable in the hands of the shareholders. In this regard, please find attached the communication being sent to the Company’s shareholders informing them regarding deduction of tax at source on dividend, if declared, at the 79th Annual General Meeting and payable during FY 2026-27. This is being sent to those shareholders whose email IDs are registered with the Company or Depositories. The communication along with annexures is also available on the website of the Company viz. https://www.grasim.com/investors/tds-on-dividend The same is for your information and record. Thanking you, Yours sincerely, For Grasim Industries Limited Neelabja Chakrabarty Company Secretary and Compliance Officer ACS - 16075 Encl: As above Luxembourg Stock Exchange Citibank N.A. Citibank N.A. 35A Boulevard Joseph II Depositary Receipt Services Custodial Services FIFC, L-1840 Luxembourg 388 Greenwich Street, 11th Floor, C-54 & 55, G 26th Floor, New York, Block, Bandra (East), NY 10013 Mumbai 400051 Grasim Industries Limited Aditya Birla Centre, ‘A’ Wing, 2nd Floor, S.K. Ahire Marg, Worli, Mumbai 400 030, India T: +91 22 6652 5000 / 2499 5000 | F: +91 22 6652 5114 / 2499 5114 E: grasim.secretarial@adityabirla.com | W: www.grasim.com | CIN: L17124MP1947PLC000410 Regd. Office : P.O. Birlagram, Nagda – 456 331 (M.P.) 29th June 2026 Ref: Folio / DP Id & Client Id No: Name of the Shareholder: Dear Shareholder(s), Sub: Communication in respect of deduction of tax at source on Dividend pay-out for FY 2026 Trust you and your family are safe and in good health. We wish to inform you that the Board of Directors ('the Board') of your Company at its meeting held on 20th May 2026 has recommended a dividend of Rs. 10 (Rupees Ten only) per equity share of the face value of Rs. 2 (Rupees Two only) each (on fully paid-up shares and partly paid-up shares in proportion to their share in the paid-up share capital) i.e, at 500%, for the financial year ended 31st March 2026, subject to approval of the shareholders at the ensuing 79th Annual General Meeting of the Company and will be paid to the shareholders holding equity shares of the Company as on the record date/book closure dates. In accordance with the provisions of the Income-tax Act, 2025 ('the Act'), and the Rules framed thereunder, dividend paid or distributed by a company shall be taxable in the hands of shareholders and the Company is required to deduct tax at source ('TDS') from dividend payable to the shareholders at the applicable rates. TDS rates that are applicable to shareholders depend upon their residential status and classification as per the provisions of the Act. The Company will therefore deduct tax at source at the time of payment of dividend, at rates based on the category of shareholders and subject to fulfilment of conditions as provided herein below: For Resident Shareholders: - Tax will be deducted at source under Section 393(1) [Table Sr. No. 7] read with Section 393(4) [Table Sr. No. 10] of the Act @ 10% on the amount of dividend payable, unless exempted under any of the provisions of the Act. However, in case of Individuals, TDS will not apply if the aggregate of total dividend paid to them by the Company during the tax year 2026-27 does not exceed Rs. 10,000/- (Rupees Ten Thousand Only). Grasim Industries Limited Aditya Birla Centre, ‘A’ Wing, 2nd Floor, S.K. Ahire Marg, Worli, Mumbai 400 030, India T: +91 22 6652 5000 / 2499 5000 | F: +91 22 6652 5114 / 2499 5114 E: grasim.secretarial@adityabirla.com | W: www.grasim.com | CIN: L17124MP1947PLC000410 Regd. Office : P.O. Birlagram, Nagda – 456 331 (M.P.) As per section 393(6) of the Act, no tax will be deducted at source in cases where a shareholder provides duly signed Form 121, provided that the eligibility conditions as prescribed under the Act are met. Form 121 can be downloaded from the link given at the end of this communication (Annexure A) or from the website of the Company viz. https://www.grasim.com/investors/tds-on-dividend. Shareholders are requested to carefully review the requirements of Form 121 and ensure that all columns are duly completed. Please note that all fields mentioned in the forms are mandatory and the Company will not be able to accept the form(s) submitted, if not filled correctly. NIL/lower tax will be deducted on dividend payable to the following categories of resident shareholders, on submission of self-declaration (Refer Annexure B): i. Insurance companies: Documentary evidence to prove that the Insurance company qualify as Insurer in terms of the provisions of Section 2(7A) of the Insurance Act, 1938 along with self-attested copy of the registration certificate substantiating applicability of section 393(4) Table: Sl. No. 10) of the IT Act and PAN card ii. Mutual Funds: Documentary evidence to prove that the mutual fund is registered with Securities and Exchange Board of India (‘SEBI’) and is notified under Schedule VII [Table Sr. No. 20] to Section 11 of the Act and is eligible for exemption, along with self- attested copy of the registration certificate and PAN card; iii. Alternative Investment Fund (AIF) established in India: Self-declaration that its income is exempt under Schedule V [Table Sr. No. 1] to Section 11 - Schedule V [Table Sr. No. 1 and 6] of the Act and that they are registered as Category I or Category II AIF under the Securities and Exchange Board of India (Alternative Investment Fund) Regulations, 2012, made under the Securities and Exchange Board of India Act, 1992. Copy of self- attested registration certificate and PAN card should also be provided; iv. National Pension System Trust & other Shareholders: Self-declaration that it qualifies as NPS trust and income is eligible for exemption under Schedule VII [Table Sr. No. 41] to Section 11 of the Act and being regulated by the provisions of the Indian Trusts Act, 1882 along with self-attested copy of PAN card; v. Corporation established by or under a Central Act which is, under any law for the time being in force, exempt from income-tax on its income: Declaration along with self-attested copy of documentary evidence supporting the exemption. Grasim Industries Limited Aditya Birla Centre, ‘A’ Wing, 2nd Floor, S.K. Ahire Marg, Worli, Mumbai 400 030, India T: +91 22 6652 5000 / 2499 5000 | F: +91 22 6652 5114 / 2499 5114 E: grasim.secretarial@adityabirla.com | W: www.grasim.com | CIN: L17124MP1947PLC000410 Regd. Office : P.O. Birlagram, Nagda – 456 331 (M.P.) vi. Recognized Provident funds/ Approved Superannuation fund/Approved Gratuity Fund: Self-declaration that its income is eligible for exemption under Schedule III [Table: S. No. 32] to section 11 of the Act along with self-attested copy of PAN card and approval granted by Commissioner of Income Tax. vii. Business Trust: Self-declaration that its income is exempt under Schedule V [Table Sr. No. 3] to Section 11 of the Act along with self attested copy of PAN card. viii. Shareholders who have provided a valid certificate issued u/s 395(1) of the Act for lower / nil rate of deduction or an exemption certificate issued by the income tax authorities along with self-attested copy of PAN card. The certificate should be valid for the tax year 2026-27 and should cover the dividend income from the Company. Please also note that where tax is deductible under the provisions of the Act and the PAN of the shareholder is either not available or PAN available in records of the Company is invalid / inoperative, tax shall be deducted @ 20% as per section 397 of the Act. For Non-Resident Shareholders (including Foreign Institutional Investors and Foreign Portfolio Investors): 1. Tax is required to be with [Showing first 8,000 characters — download PDF for full document]