Key Quantitative Figures

  • Final dividend recommended: ₹5 per equity share (face value ₹2 each).
  • TDS rate for resident shareholders with valid PAN: 10%.
  • TDS rate for resident shareholders without valid PAN: 20%.
  • TDS exemption threshold for resident individuals: aggregate dividend ≤ ₹10,000 for FY 2026-27.
  • General TDS rate for non-resident shareholders: 20% (plus surcharge and cess).
  • TDS rate for Specified Funds and GDR holders: 10% (plus surcharge and cess).

Parties Involved

  • Shareholders: Resident and Non-Resident categories.
  • Regulatory References: SEBI Listing Regulations (Regulation 30), Income Tax Act, 2025.
  • Other Entities: Insurance Regulatory and Development Authority (IRDA), SEBI (for Mutual Funds and AIFs), CBDT.

Purpose/Rationale

To inform shareholders about TDS provisions applicable to the recommended final dividend, ensuring compliance with the Income Tax Act, 2025, and enabling shareholders to submit necessary documents to avail lower/NIL TDS rates or claim DTAA benefits.

Financial Impact

  • Dividend outflow subject to TDS deductions as per prescribed rates.
  • Financial impact not quantified in the disclosure.

Capital Structure Impact

None disclosed; dividend payment does not alter share capital.

Cash Flow Implications

Outflow due to dividend payment post-TDS deduction; amount dependent on shareholder submissions and applicable rates.

Forward-Looking Guidance

None provided beyond TDS provisions and submission deadlines.

Specific TDS Provisions

For Resident Shareholders

  • Individuals: No TDS if dividend ≤ ₹10,000 annually or Form 121 submitted.
  • Non-Individuals: Exemptions for insurers, mutual funds, AIFs, NPS Trust, IFSC units upon submission of self-declarations and PAN.
  • Section 395(1) certificate for lower/NIL TDS accepted.

For Non-Resident Shareholders

  • General rate: 20% (plus surcharge and cess).
  • Lower rate (10%) for Specified Funds and GDR holders.
  • DTAA benefits available upon submission of PAN, TRC, Form 41, and self-declaration of treaty eligibility.
  • Section 395(1) certificate for lower/NIL TDS accepted.

Submission Details

  • Deadline: June 23, 2026.
  • Portal: https://ris.kfintech.com/form15 (for residents).
  • Late submissions will not be considered.

Additional Requirements

  • PAN mandatory for residents; higher TDS for invalid/missing PAN.
  • Aadhaar-PAN linkage required to avoid PAN being considered inoperative.
  • Bank account details in demat must be updated for dividend credit.

Disclaimer

This communication is not advice from the Company, affiliates, or RTA.

#Tags: #DalmiaBharat #Dividend #TDS #SEBIDisclosure #RegulatoryCompliance #Neutral