Company Disclosure: Dividend TDS Procedures

Dividend Recommendation and Key Dates

The Board of Directors at its meeting held on May 23, 2026, recommended declaration of dividend of ₹30 per fully paid-up equity share of face value ₹2 each (1,500%) for FY ended March 31, 2026. This dividend is subject to approval by shareholders at the 36th Annual General Meeting scheduled for August 10, 2026. If approved, dividend distribution will occur on or after August 14, 2026. The record date for determining eligibility is July 24, 2026.

TDS Framework and Rates

In accordance with the Income-tax Act, 2025, the company is required to deduct tax at source from dividend payments at applicable rates:

For Resident Shareholders:
  • Standard TDS: 10% for shareholders with valid PAN registered
  • Higher TDS: 20% for shareholders without PAN, invalid PAN, or inoperative PAN due to non-linking with Aadhaar
  • Exemptions:
  • No TDS if total dividend does not exceed ₹10,000 for resident individuals
  • No TDS for resident non-individuals (insurance companies, mutual funds, AIFs, NPS Trust) upon submission of specific documentation
  • Lower/nil withholding possible with certificate under Section 395 of the Act
For Non-Resident Shareholders:
  • Standard withholding tax: 20% (plus applicable surcharge and cess)
  • DTAA benefits: Available upon submission of PAN (or alternative details), Tax Residency Certificate, e-filed Form 41, treaty eligibility declaration, and SEBI registration certificate for FIIs/FPIs
  • Lower withholding: Possible with certificate under Section 395 of the Act

Documentation Requirements and Deadlines

Shareholders must submit all required documents by July 24, 2026 cut-off date:

  • Resident individuals: Form 121 for exemption (if dividend exceeds ₹10,000)
  • Resident non-individuals: Declaration of category with supporting documents (Annexure 2)
  • Non-residents: Documents for DTAA benefits (Annexure 3) or lower withholding certificate
  • All shareholders: Valid PAN details and bank account information

Documents must be submitted through designated portals or emailed to specified addresses. Documents received after July 24, 2026 will not be considered for TDS determination.

Payment Mechanism

  • Dividend will be paid electronically after AGM approval
  • Dematerialized shareholders must update bank details with their depository participants
  • Physical shareholders must provide PAN, contact details, bank account details, and specimen signature to KFinTech/company
  • Company TAN for lower withholding certificates: HYDD00401C (certificates with other TANs will not be accepted)

Additional Provisions

  • PAN-Aadhaar linking mandatory; non-linked PANs considered invalid/inoperative attracting 20% TDS
  • Rule 203 declaration required if dividend income assessable by person other than deductee
  • For multiple accounts under different statuses with single PAN, highest applicable tax rate will apply to entire holding

Available Resources

All annexures and forms are available on the company's website at https://www.divislabs.com/investor-relations/statutory-communication/#2026-27. Shareholders facing difficulties can contact einward.ris@kfintech.com and dividendtds@divislabs.com.