This is a regulatory communication from Dai-ichi Karkaria Limited to its shareholders regarding the procedures for Tax Deduction at Source (TDS) on a proposed dividend for the financial year 2025-26.

Dividend Recommendation

The Board of Directors, at their meeting held on May 8, 2026, have recommended a dividend of Rs. 1.50 per equity share of Rs. 10 each for the financial year ended March 31, 2026. This is subject to the approval of members at the 66th Annual General Meeting (AGM) scheduled to be held on Thursday, August 27, 2026.

TDS Applicability and Key Deadline

Pursuant to the Income-tax Act, 2025, dividend income is taxable in the hands of shareholders, and the company is required to deduct tax at source. Shareholders must submit all required declarations and documents (e.g., Form 121, Form 41, PAN, TRC) on or before August 19, 2026, to enable the company to determine the appropriate TDS rate. No communication received after this date will be considered for the dividend payment.

TDS Rates and Requirements for Resident Shareholders

  • General Rate: 10% under section 393(1) read with 393(4) of the Act. A valid PAN must be updated with the depositories (demat) or the RTA, MUFG Intime India Private Limited (physical).
  • No TDS: If dividend income for a resident individual does not exceed INR 10,000 during T.Y. 2026-27, or if the shareholder is exempt under a government circular/notification and furnishes supporting evidence.
  • Higher Rate without PAN: 20% under section 397(2) if PAN is invalid, not provided, or not linked with Aadhaar.
  • Form 121: Eligible resident individuals can submit this form for nil/lower tax deduction.
  • Section 395(1) Order: Shareholders can provide a lower/NIL withholding tax certificate from Income Tax authorities.

Specific documentation requirements are outlined for various entities including Insurance Companies, Mutual Funds, Alternative Investment Funds, NPS Trust, and corporations established under a Central Act.

TDS Rates and Requirements for Non-Resident Shareholders

  • General Rate: 20% (plus applicable surcharge and cess) or the Tax Treaty rate, whichever is more beneficial as per section 393(2).
  • Documents Required: Copy of PAN card (if any), self-attested Tax Residency Certificate (TRC), Form 41 filed online, and self-declarations confirming no Permanent Establishment in India and eligibility for treaty benefits.
  • GDR Holders: 10% TDS rate if PAN is provided; 20% if no PAN details are available.
  • Section 395(1) Order: Lower/NIL withholding tax certificate from Income Tax authorities can be provided.

SEBI Compliance for Physical Shareholders

Referencing SEBI Master Circular dated May 7, 2024, and SEBI Circular dated June 10, 2024:

  • Shareholders holding shares in physical mode must have updated PAN, Choice of Nomination, Contact Details (postal address with PIN), Mobile Number, Bank Account Details, and Specimen Signature ("KYC") with the RTA to receive dividends electronically.
  • The company will not process dividends through warrants, demand drafts, or banker's cheques for physical shareholders whose details are not updated.
  • If details are updated after April 1, 2024, the shareholder will receive all dividends declared from that date onward pertaining to securities held after the updation.

Other Important Notes

  • For shareholders with multiple accounts under a single PAN, the highest applicable tax rate will be applied to the entire holding.
  • TDS certificates will be issued post-completion of activities. TDS credit can be viewed in Form 168 on the e-filing portal (https://incometaxindiaefiling.gov.in).
  • A declaration under Rule 203 must be filed if the dividend income is assessable in the hands of a person other than the deductee, and no declaration will be accepted after two months of payout.
  • Shareholders are advised to ensure their bank account details are correctly linked to their Demat accounts for timely dividend credit.

Contact and Submission

Relevant forms (ISR-1, ISR-2, SH-13, Form 121, Form 41) are available on the RTA's website. Documents must be uploaded to https://web.in.mpms.mufg.com/formsreg/submission or emailed to [investor@dai-ichiindia.com](mailto:investor@dai-ichiindia.com). The full communication is also available on the company's website at https://www.dai-ichiindia.com/investor/.