Communication to Shareholders- Intimation on Tax Deduction at Source (TDS)/ withholding tax on Dividend

Date: July 25, 2026 The National Stock Exchange of India Limited BSE Limited Exchange Plaza, Listing department, Bandra-Kurla Complex, First floor, PJ Towers, Bandra (E), Mumbai – 400051. Dalal Street, Fort Mumbai - 400 001 Symbol: FIVESTAR Dear Sir/ Madam Sub: Communication to Shareholders - Intimation on Tax Deduction at Source (TDS) /withholding tax on Dividend. Pursuant to the recommendation of Final Dividend by the Board of Directors of the Company at its Meeting held on Tuesday, April 28, 2026 the Company has sent email communication on tax deductible at source (TDS)/withholding tax to the shareholders, whose email addresses are registered with the Company/ Depository Participant. Please find enclosed herewith the email communication which has been sent to the shareholders indicating the process and documentation required for claiming tax exemption/withholding tax on the dividends payable to the shareholders Further, the aforesaid information is also available on the Company’s website at www.fivestargroup.in. We request you to kindly take the same on record. Thank you, Yours Faithfully, For Five-Star Business Finance Limited Vigneshkumar SM Company Secretary & Compliance Officer FIVE-STAR BUSINESS FINANCE LIMITED Regd. Office: New No.27, Old No.4, Taylor's Road, Kilpauk, Chennai - 600010; Phone: 044 4610 6200 CIN: L65991TN1984PLC010844 Website: www.fivestargroup.in Email ID: secretary@fivestargroup.in Date: 25th July 2026 Dear Shareholder(s), Subject: Tax Deducted at Source (TDS) on Final Dividend We hope this e-mail finds you safe and in good health We are pleased to inform you that the Board of Directors of Five-Star Business Finance Limited ("Company"), at its Meeting held on April 28, 2026, has recommended a final dividend of Rs. 2.00/- (Indian Rupees Two only) per equity share of face value of Rs. 1/- for the financial year 2025- The Annual General meeting of the Company is scheduled to be held on Monday, August 31, 2026 The Members holding shares as of the record date fixed for determining the eligibility of Members for payment of dividend is Friday, July 31, 2026 and the final dividend would be paid to the eligible Members on or before September 29, 2026, if approved. Pursuant to the provisions of the Income-tax Act, 2025 ("the Act"), as amended by the Finance Act, 2026, dividend income will be taxable at the hands of Shareholders (w.e.f. 1st April, 2020). For the prescribed rates for various categories, the Shareholders are requested to refer to the Income-tax Act, 2025 and amendments thereof. We are attaching herewith the general information with regard to the Tax Deducted at Source as Annexure-A, for your kind reference. All the shareholders are requested to update their records such as tax residential status, Permanent Account Number (PAN), bank account details and register your email address, mobile numbers and other details with your relevant depositories through your depository participants in case you are holding shares in dematerialized form and if you are holding shares in physical mode, you are requested to furnish details to the Company's Registrar and Share Transfer Agent ("RTA"), i.e. KFin Technologies Limited. Annexure A General information regarding the Tax Deducted at Source I. FOR RESIDENT SHAREHOLDERS a. The summary of applicable rates of TDS for resident shareholders are given below: Category of shareholder Rate of deduction (%) 1. Resident Individuals • Exempt where the total dividend for the year does not exceed INR 10,000 • In other cases, 10% shall apply 2. Alternative Investment Fund • Category I or a Category II AIF - Exempted • Category III AIF - 10% 3. Mutual Funds 4. Insurance Companies Exempt, subject to submission of valid documents as per the Act. 5. Government (Central/State) 6. Others 10% b. Tax is required to be deducted at source under Section 393 of the Act, at the rate of 10% on the amount of dividend payable where shareholders have registered their valid PAN. In case, shareholders do not have PAN / have not registered their valid PAN details in their account, TDS at the rate of 20% (plus applicable surcharge and cess) shall be deducted as per Section 397(2) of the Act. c. Where PAN is not linked with Aadhaar, PAN will be treated as inoperative, and TDS will be deducted @ 20%. d. No tax shall be deducted on the dividend payable to resident individuals if - • Total dividend amount to be received by them during the Financial Year does not exceed Rs. 10,000/; or • The shareholder provides a written declaration in prescribed Form 121, provided that all the required eligibility conditions are met. Please note that all fields are mandatory to be filled up and Company may at its sole discretion reject the form if it does not fulfil the requirement of law; Click here to download Form 121; or • Exemption certificate is issued by the Income-tax Department, if any. II. Resident non-individuals: No tax shall be deducted on the dividend payable to the following resident non- individuals where they provide details and documents as below: a. Mutual Funds- No TDS is required to be deducted as per Section 393(5) of the Act, provided a self-declaration along with self-attested copy of the PAN and SEBI registration certificate is submitted to the Company. b. Insurance Companies - Declaration that they have full beneficial interest with respect to the shares owned by them along with self-attested PAN and valid IRDAI registration certificate. c. Category I and II Alternative Investment Fund - Self-declaration that their income is exempt under Schedule V (Sl No 1) of Income Tax Act, 2025 and they are governed as Category I or Category II AIF under SEBI regulations along with a self-attested copy of the PAN card and registration certificate. d. Government (Central/State)- No tax is required to be deducted at source on dividend payable to the Government of India, the Reserve Bank of India (RBI), or a corporation established under a Central Act which is specifically exempt from income-tax, as per the exemption provisions under the Income-tax Act (corresponding to Section 393(5) of the Income-tax Act, 2025), subject to submission of a valid self-declaration along with self- attested copies of relevant documentary evidence in support of the claim. e. Any other entity entitled to exemption from TDS - Valid self-attested documentary evidence in support of the entity being entitled to TDS exemption along with a self- attested copy of PAN card should be submitted to the Company. Investors can download the self-declaration format in the link given below: Click here to download In case, event that a shareholder (individual or non-individual) obtains a certificate under Section 395 of the Income-tax Act, 2025 for deduction of tax at a lower rate, the Company shall deduct tax at the rate specified in such certificate. A self-attested copy of the valid certificate must be submitted. III. FOR NON-RESIDENT SHAREHOLDERS The applicable rate of TDS for non-resident shareholders are given below: a. TDS will be @ 20% (plus applicable surcharge & cess) or at the Tax Treaty Rates, whichever is lower, on the amount of the dividend payable to the Non-Resident Shareholders b. Further, Taxes are required to be withheld in accordance with the provisions of Section 393 of the Income tax Act, 2025 at the applicable rates in force. As per the relevant provisions of Section 393 of the said Act, the withholding tax shall be at the rate of 20% (plus applicable surcharge and cess) on the amount of Dividend payable to them. In case of FII/FPIs, the withholding tax shall be as per the rates specified in Section 393 (2) of the Act respectively plus applicable surcharge and cess on the amount of Dividend payable to them. However, as per Section 159 of the Income tax Act, the non-resident shareholder has the option to be governed by the provisions of the Double Tax Avoidance Agreement (DTAA) between India and the country of tax residence of the shareholde [Showing first 8,000 characters — download PDF for full document]