Key Quantitative Figures

The Board of Directors, at their meeting held on May 07, 2026, recommended a final dividend of ₹0.50 per equity share of face value ₹5 each.

Dates of Action and Transaction

  • Board Recommendation Date: May 07, 2026
  • Record Date: Friday, September 11, 2026 (for determining shareholders eligible for the dividend)
  • AGM Date: Tuesday, September 29, 2026, at 02:30 P.M. (IST) (for shareholder approval)
  • Document Submission Deadline: Monday, September 21, 2026 (for shareholders to submit forms for beneficial TDS rates)

Parties Involved

  • Regulators: The communication is addressed to BSE Limited and the National Stock Exchange of India Limited.
  • Shareholders: The communication is directed to all shareholders of Ceigall India Limited.
  • Registrar and Transfer Agent (RTA): MUFG is implied as the RTA through the document upload links provided.

Stated Rationale

The communication is issued to ensure compliance with the Income Tax Act, 2025, which mandates TDS on dividend payments effective April 01, 2026, and to guide shareholders on the process to avoid higher deduction of taxes.

Financial and Operational Impact

The financial impact is the outflow of the dividend amount, which is ₹0.50 per share, subject to TDS deductions at varying rates. The company specifies that no tax will be deducted for resident individual shareholders if the total dividend paid during Tax Year 2026-27 does not exceed ₹10,000.

Detailed TDS Framework

A. RESIDENT SHAREHOLDERS

A.1 Standard Withholding (if conditions for nil rate not met): Tax is deductible at source.

A.2 Nil Tax Deductible: Applies if shareholders submit specific declarations and documents by the deadline.

  • Individual with dividend > ₹10,000: Must submit Form 121, PAN copy.
  • Entities u/s 393(1) (e.g., LIC, GIC, REIT, InVIT): Must submit a self-declaration (Annexure-2) and documentary evidence.
  • Entities u/s 393(5) (e.g., Government, RBI, specific Mutual Funds): Must submit a self-declaration (Annexure-2) and evidence.
  • Category I & II AIF: Must submit a self-declaration (Annexure-2), PAN, and registration certificate.
  • Entities u/s 393(6): Must submit a self-declaration (Annexure-2 & 3) and evidence, or a lower tax withholding certificate from the Income Tax Department.

B. NON-RESIDENT SHAREHOLDERS

  • FIIs/FPIs: 20% + surcharge + cess, or beneficial tax treaty rate. Requires PAN (if available), self-declaration (Annexure-4), Tax Residency Certificate (TRC), and digital Form 41.
  • Category III AIF in IFSC: 10% + surcharge + cess. Requires PAN (if available) and self-declaration (Annexure-5).
  • Other Non-Residents (excl. Notified Jurisdictions): 20% + surcharge + cess, or beneficial treaty rate. Requires PAN (if available), TRC, digital Form 41, and a self-declaration on letterhead for PE/beneficial ownership (Annexure-4). Specific requirements for Singapore residents.
  • Residents of Notified Jurisdictional Area: 30% withholding tax. No specific documents listed for nil rate.
  • Entities specified u/s Schedule V to Section 11: NIL rate. Requires a self-declaration (Annexure-6 & 7).
  • Subsidiary of ADIA: NIL rate. Requires a self-declaration (Annexure-8).
  • Lower/NIL Tax Certificate Holders: Rate as per certificate from Income Tax Department u/s 395(1). Requires a copy of the certificate.

Important Notes and Conditions

  • Dividends will be paid only through electronic mode. Shareholders must ensure bank details are updated with their Depository Participant.
  • Shareholders must update KYC data (PAN, email, address, mobile, bank account) with their Depository Participant.
  • TDS certificates will be issued electronically. Tax credit statements can be downloaded from the Income Tax Department's portal.
  • PAN must be linked with Aadhaar. Failure will render PAN inoperative, leading to TDS at 20% u/s 397(2).
  • Clearing members must ensure no shares are in their account on the record date.
  • The company reserves the right to verify PAN details and reject incomplete documents.
  • For shareholders with multiple accounts under a single PAN, the highest applicable tax rate will be applied to the entire holding.
  • The company is not liable for higher TDS deductions; shareholders must file returns to claim refunds.
  • Shareholders are responsible for indemnifying the company against any tax demands arising from misrepresentation.
  • Form 41 for non-residents must be in the mandated electronic format.
  • A declaration must be filed if dividend income is assessable in the hands of a person other than the shareholder (Rule 203 of Income-tax Rules, 2026).
  • Surcharge is deducted at the highest rate.
  • A 4% Health and Education Cess is applicable for non-residents.

Disclaimer

The communication includes a standard disclaimer stating that it is for general information purposes only and does not constitute legal or tax advice. Shareholders are advised to consult their own tax consultants.