Cosmo First Limited has communicated detailed TDS procedures for its final dividend payout for FY 2025-26. The Board of Directors, in their meeting held on May 20, 2026, approved a final dividend of ₹4 per equity share (face value ₹10 each). This dividend is subject to approval by shareholders at the 49th Annual General Meeting (AGM) scheduled for August 5, 2026. The record date for determining eligibility is Wednesday, July 22, 2026.

Under the Income-tax Act, 2025, dividend income is taxable in the hands of shareholders, and the company is required to withhold taxes at prescribed rates. The withholding tax rate depends on the residential status, category of the shareholder, and submission of requisite declarations/documents. No tax will be deducted for resident individual shareholders if the total dividend during FY 2026-27 does not exceed ₹10,000.

Shareholders must submit required documents by July 24, 2026, to enable the company to determine the applicable TDS rate. The communication includes detailed tables for resident and non-resident shareholders outlining TDS rates, required declarations, and documents.

Key TDS Rates and Procedures:

  • Resident Shareholders:
  • No TDS if dividend ≤ ₹10,000 for resident individuals.
  • 10% TDS with valid PAN; 20% with no/invalid PAN.
  • Nil TDS for specific categories (e.g., LIC, GIC, mutual funds, AIFs) upon submission of prescribed declarations.
  • Non-Resident Shareholders:
  • 20% TDS plus surcharge and cess for FIIs/FPIs, or beneficial tax treaty rate.
  • 10% for Category III AIFs or ETFs in IFSC.
  • 30% for shareholders from Notified Jurisdictional Areas.
  • Nil TDS for sovereign wealth funds, pension funds, and ADIA subsidiaries upon submission of declarations.

Important Notes:

  • Shareholders must ensure PAN is updated and valid to avoid higher TDS rates.
  • Documents must be submitted by July 24, 2026; late submissions will not be considered.
  • TDS certificates will be provided upon request, and tax credit statements can be downloaded from the Income Tax Department's portal.
  • Shareholders are responsible for indemnifying the company against any tax demands arising from misrepresentation.

SEBI Mandate for Electronic Dividend Payments:

Effective April 1, 2024, dividends for physical shareholders will be paid only electronically after furnishing PAN, contact details, bank account details, and specimen signatures.

The communication includes multiple annexures (A to L) with formats for declarations, such as Form 121 for resident individuals, self-declarations for exempt entities, and DTAA benefits for non-residents. Shareholders are advised to consult tax advisors for specific implications.