Updates

Suit Kumar Pattanaik Business Controller-India, CFO & Whole-time Director sujitkumar.pattanaik@timken.com 7 July, 2026 National Stock Exchange of India Limited Exchange Plaza, Plot No. C/1, G-Block, Bandra- Kurla Complex, Bandra (E), Mumbai- 400 051. NSE Symbol - TIMKEN BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street, Fort, Mumbai- 400 001. Scrip Code- 522113 Dear Sir/Madam, Sub: Communication to Members in respect of deduction of tax at source on dividend The Board of Directors, subject to approval of Members at 39th Annual General Meeting ('AGM'), has recommended dividend of Rs. 2.50/- per equity share of Rs. 10/- each fully paid up for the financial year ended 31 March, 2026. In terms of the extant provisions of the Income Tax Act, 2025 ("Act"), dividend paid or distributed by a Company shall be taxable in the hands of shareholders. The Company will, therefore, be required to deduct tax at source at the applicable rates, at the time of payment of dividend. This communication provides brief about tax deduction at source on dividend. I. Resident Shareholders A. Resident Shareholders – Individuals Tax shall be deducted at source (TDS) under Section 393(1) & its Table: Sl. No. 7 & its Note of the Income Tax Act, 2025, at the rate of 10% on the amount of dividend declared and paid by the Company during the Tax Year 2026-27, provided a valid Permanent Account Number (PAN) is provided by the Shareholder. TDS would be deducted 20% as per Section 397(2) of the Act, if PAN is not submitted / invalid. No tax shall be deducted on the dividend payable to resident individuals if: i. The aggregate of total dividend distributed or paid to them by the Company during the Tax Year 2026-27 does not exceed Rs. 10,000/-. ii. The Shareholder provides a written declaration in prescribed Form 121 (applicable to any person other than a Company or a Firm), subject to eligibility conditions being met. The draft Form 121 are available at https://www.timken.com/en-in/investors/statutory- compliances/ - under “Dividend Updates” section). Registered office: Timken India Limited 39-42, Electronic City, Phase II, Hosur Road, Bangalore 560 100. Tel: +91(80) 41362000, Fax: +91(80) 41362010, Website: www.timken.com/en-in/ CIN:L29130KA1996PLC048230 B. Resident Shareholders - Other than Individuals In case of certain class of resident Shareholders other than individuals, who are covered under Section 393(4), Table: Sl. No. 10, no tax shall be deducted at source ('Nil rate') provided sufficient documentary evidence thereof, to the satisfaction of the Company, is submitted. The minimum details required in case of such resident Shareholders, are given below: 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. Mutual Funds: Self-declaration that they are specified and covered under Schedule VII (Table Sl No 20 or 21) of Income Tax Act, 2025, along with a self-attested copy of PAN card and registration certificate. Alternative Investment Fund (AIF): 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. 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: Self-declaration specifying the specific Central Act under which such corporation is established and that their income is exempt under the provisions of the Act along with a self-attested copy of the PAN card and registration certificate. Other Resident Non-Individual Shareholders: Shareholders who are exempted from the provisions of TDS as per Section 393(4), Table: Sl. No. 10 of the Act shall also not be subjected to any TDS, provided they submit a self-attested copy of the PAN card along with the documentary evidence in relation to the exemption from the provisions of TDS as per the Act. In addition, above-mentioned entities should also give self-declaration. The self-declaration by Resident Non-Individuals is available at https://www.timken.com/en-in/investors/statutory- compliances/ - under “Dividend Updates” section). Application of Nil rate at the time of tax deduction / withholding on dividend amounts will depend upon the completeness and satisfactory review by the Company of the documents submitted by such Shareholders. II. Non-resident Shareholders or Foreign Companies ('non-resident payee') Tax is required to be withheld in accordance with the provisions of Section 393(2) & its Table: Sl. No. 17 & its Note of Income Tax Act, 2025 at applicable rates in force. As per the relevant provisions of the Act, the withholding tax shall be at the rate of 20% (plus applicable surcharge and cess) on the amount of dividend payable to them. However, as per Section 159 of the Act, a non-resident payee has the option to be governed by the provisions of the Double Tax Avoidance Agreement (DTAA) read with Multilateral Instrument (MLI) provisions, if any, between India and the country of tax residence of the Shareholder, if they are more beneficial to them. For this purpose, i.e. to avail Tax Treaty benefits, the Non-resident Shareholders will have to provide the following: 1. Self-attested copy of the Permanent Account Number (PAN), if any, allotted by the Indian Income Tax authorities. 2. In case PAN is not available, the Non-Resident Shareholder shall furnish (a) name, (b) email id, (c) contact number, (d) address in residency country, (e) tax residency certificate from the Government of that country or specified territory and (f) Tax Identification Number of the residency country. 3. Self-attested copy of Tax Residency Certificate (TRC) obtained from the tax authorities of the country of which the shareholder is resident 4. Form 41 filed electronically on the Indian Income Tax web portal as required under the Income-tax Act, 2025. 5. Self-declaration by the Non-resident Shareholder having no Permanent Establishment in India in accordance with the applicable Tax Treaty. Declaration of no Permanent Establishment will be mandatorily required, failing which tax would be deducted at a higher rate in accordance with the Act. 6. In case of Foreign Institutional Investors and Foreign Portfolio Investors, in addition to the above details, copy of SEBI registration certificate will also be required. The format of the self-declaration by Non-resident Shareholders is available at https://www.timken.com/en-in/investors/statutory-compliances/ - under “Dividend Updates” section) The Company is not obligated to apply the beneficial DTAA rates at the time of tax deduction / withholding on dividend amounts. Application of beneficial DTAA rate shall depend upon the completeness and satisfactory review by the Company of the documents submitted by Non- Resident Shareholder. Lower withholding certificate (Resident as well as Non-Resident Shareholders) Notwithstanding anything contained above, in the case where the Shareholders provide a certificate under Section 395 of the Act for lower / NIL withholding of taxes, the rate specified in the said certificate shall be considered based on submission of self-attested copy of the same. Shareholders holding shares in physical form are requested to update their PAN details with RTA. Shareholders having multiple accounts under different status / category: Shareholders holding shares under multiple accounts under different status / category and single PAN, may note that higher of the tax as applicable to the status in which shares held under a PAN will be considered on their entire holding in different accounts. General Information 1. To enable us to determine the appropriate TDS / withholding tax rate applicability, the aforementioned documents are required to be provided with RTA no later than end of 8 A [Showing first 8,000 characters — download PDF for full document]