Key Quantitative Figures

  • Recommended final dividend: ₹12.50 per fully paid-up ordinary share of face value ₹10 each (125%)
  • Financial Year: Ended March 31, 2026 (FY 2025-26)
  • TDS rate for resident shareholders with valid PAN: 10%
  • TDS rate for resident shareholders without valid PAN/invalid PAN: 20%
  • Annual exemption threshold for resident individuals: Dividend income not exceeding ₹10,000 during FY 2026-27
  • TDS rate for non-resident shareholders: 20% (plus applicable surcharge and cess)

Dates of Action

  • Board Meeting Date: May 13, 2026 (dividend recommendation approved)
  • Record Date: Thursday, September 3, 2026
  • Annual General Meeting (AGM): September 10, 2026 (shareholder approval required)
  • Dividend Distribution Date: On or before October 9, 2026
  • Document Submission Deadline: September 3, 2026 (cut-off period)

Parties Involved

  • Regulatory References: Income Tax Act, 2025; SEBI Circulars
  • Tax Authority: Income Tax Department of India
  • Company TAN: DELI04536A (for lower withholding certificates)

TDS Procedures for Shareholders

For Resident Shareholders

  • Tax deducted at source under Section 393(1) at 10% for shareholders with valid PAN registered in demat account.
  • Tax deducted at 20% under Section 397(2) for shareholders without PAN, invalid PAN, or PAN not linked with Aadhaar (inoperative PAN).
  • No TDS for resident individuals if aggregate dividend during FY 2026-27 does not exceed ₹10,000.
  • Exemption possible through declaration in Form 121 (Annexure 1) or exemption certificate under Section 395.

For Resident Non-Individual Shareholders

Specific exemption procedures for:

  • Insurance Companies: Must provide self-declaration of qualification as 'Insurer' under Insurance Act, 1938, PAN card, and IRDA registration.
  • Mutual Funds: Must provide self-declaration of SEBI registration and notification under Schedule VII, along with PAN and SEBI registration certificate.
  • Alternative Investment Funds (AIF): Must provide self-declaration of exemption under Schedule V and SEBI registration as Category I or II AIF, with PAN and registration certificate.
  • NPS Trust: Must provide self-declaration qualifying as NPS trust with exemption under Schedule VII, along with PAN card.
  • Other Non-Individual Shareholders: Must provide self-declaration of exemption under Section 11 or Section 393, with supporting documentary evidence and PAN card.

For Non-Resident Shareholders

  • Default withholding tax rate of 20% (plus applicable surcharge and cess).
  • Option to be governed by Double Tax Avoidance Agreement (DTAA) provisions if more beneficial, subject to conditions including non-applicability of GAAR.
  • Required documents for DTAA benefits:
  • Self-attested PAN copy or information under Rule 217 (Annexure 3)
  • Self-attested Tax Residency Certificate (TRC) for FY 2026-27
  • E-filed Form 41 valid for April 2026-March 2027
  • Self-declaration for no permanent establishment in India and eligibility for tax treaty benefit (Annexure 4)
  • SEBI registration certificate for FIIs/FPIs
  • Additional evidence for Singapore tax residents regarding Article 24 Limitation of Relief

Lower Withholding Certificates

  • Shareholders (resident or non-resident) can provide certificate under Section 393/395 for lower/nil withholding of taxes.
  • Certificate must be issued on the Company's TAN: DELI04536A.

Submission Process

  • Documents can be uploaded at: https://web.in.mpms.mufg.com/formsreg/submission-of-Form-121-41.html
  • Email submissions:
  • Resident Shareholders: Csgexemptforms2627@in.mpms.mufg.com
  • Non-Resident Shareholders: dividend.interarch@vmc-ca.in
  • Strict deadline: All documents must be submitted on or before September 3, 2026.

Additional Provisions

  • PAN-Aadhaar linking requirement under Section 262: PAN becomes invalid/inoperative if not linked, resulting in 20% TDS.
  • Declaration under Rule 203 required if dividend income is assessable in hands of person other than deductee (Annexure 5).
  • For shareholders with multiple accounts under different status/category with single PAN, the higher applicable tax rate will be applied to entire holding.

Dividend Payment Method

  • SEBI mandate effective April 1, 2024: Dividend to physical shareholders paid only through electronic mode.
  • Physical shareholders must furnish PAN, nomination choice, contact details, mobile number, bank account details, and specimen signature.
  • Shareholders are requested to update bank account details in their demat accounts/physical folios.

Tax Credit and Refunds

  • Tax credit can be viewed in Form 26AS through TRACES (https://www.tdscpc.gov.in) or Income Tax e-filing portal.
  • Shareholders can claim appropriate refund in their income tax return if tax was deducted at higher rate.

Disclaimer

This communication is not to be treated as advice from Interarch Building Solutions Limited, its affiliates, or its Registrar & Transfer Agent.