Datamatics Global Services Limited has communicated detailed procedures for Tax Deduction at Source (TDS) on the proposed final dividend for financial year ended March 31, 2026.
Dividend Declaration
The Board of Directors, at their meeting held on May 21, 2026, recommended a final dividend of ₹5 per equity share (face value ₹5 each) for FY2025-26. This dividend payment is subject to approval by shareholders at the ensuing Annual General Meeting.
TDS Applicability
Pursuant to the Income-tax Act, 2025, dividend income is taxable in the hands of shareholders. The Company will deduct TDS at applicable rates when paying the dividend, if approved. No tax will be deducted for resident individual shareholders if the total dividend paid during Tax Year 2026-27 does not exceed ₹10,000.
Documentation Deadline
Shareholders must submit all required tax-related documents by September 11, 2026. Documents received after this date will not be considered for determining the applicable TDS rate for the final dividend payment.
Resident Shareholder TDS Rates
- Standard Rate: 10% with valid PAN (Section 393(1))
- Higher Rate: 20% with no/invalid/inoperative PAN (Section 397(2))
- Lower/Nil Rate: As specified in certificate obtained from Income Tax Department under Section 395(1)
Nil TDS Conditions for Residents
Shareholders can claim nil TDS deduction by submitting:
1. Form No. 121 (for individuals with dividend income exceeding ₹10,000)
2. Self-declaration for entities covered under Section 393(4) (LIC, GIC, Business Trusts, REITs/InVITs)
3. Self-declaration with evidence for entities under Section 393(5) (Government, RBI, Mutual Funds, exempt corporations)
4. Self-declaration for Category I & II Alternative Investment Funds
5. Self-declaration for any other exempt entities under ITA 2025
Non-Resident Shareholder TDS Rates
1. FIIs/FPIs/Other Non-Residents: 20% (plus surcharge and cess) under Section 393(2), subject to applicable treaty rates
2. Category III AIFs in IFSC: 10% (plus surcharge and cess)
3. Residents of Notified Jurisdictional Area: 30% (plus surcharge and cess)
4. Sovereign Wealth Funds and Pension Funds: NIL if notified by Central Government
5. Lower/Nil Rate: As specified in certificate from Income Tax Department under Section 395(1)
Non-Resident Documentation Requirements
Non-resident shareholders must provide:
- Copy of PAN card (if available)
- Tax Residency Certificate for TY 2026-27
- Electronically filed Form 41 from Income-tax portal
- SEBI Registration Certificate (for FIIs/FPIs)
- Relevant self-declaration forms (Annexures 3-6)
Additional Provisions
- Rule 203 of Income-tax Rules, 2026 requires declaration where dividend income is assessable by someone other than the deductee
- For multiple accounts under different statuses against single PAN, the highest applicable tax rate will be applied on aggregate dividend
- The Company is not obligated to apply beneficial tax treaty rates with MLI provisions
- TDS certificates will be sent electronically to registered email IDs within prescribed time limits
Submission Details
Documents should be sent to: Registered Office at Knowledge Centre, Street No. 17, Plot 58, MIDC, Andheri (E) Mumbai 400 093, India or emailed to investors@datamatics.com
Website Resources
All declaration forms and annexures are available at: https://www.datamatics.com/about-us/investor-relations/financials
Disclaimer
The communication does not constitute legal or tax advice, and shareholders are advised to consult their tax consultants for specific implications.