Jyothy Labs Limited has communicated detailed procedures for Tax Deducted at Source (TDS) on dividends to its shareholders via email and a regulatory filing to the stock exchanges.

Dividend Declaration and Record Date

The Board of Directors, at their meeting held on May 4, 2026, recommended a Final Dividend of ₹3.50 per equity share (face value of Re. 1 each), which translates to a 350% dividend for the Financial Year 2025-26. This dividend payment is subject to approval by shareholders at the ensuing 35th Annual General Meeting (AGM). The company will announce a Record Date in due course to determine the shareholders eligible to receive this dividend.

Mandatory Shareholder Details

Pursuant to SEBI Master Circular No. SEBI/HO/MIRSD/POD-1/P/CIR/2024/37 dated May 7, 2024, shareholders must ensure their PAN, KYC details (including email, mobile number, and bank account details), and Nomination (for physical folios) are updated with the Registrar and Share Transfer Agent (RTA), MUFG Intime India Private Limited. Effective April 1, 2024, no dividend will be paid via physical warrant to physical shareholders; all payments require updated bank details for direct credit.

TDS Framework and Submission Deadline

Dividend income is taxable in the hands of shareholders per the Income Tax Act, 2025. The company will deduct TDS at the time of payment. The applicable TDS rate depends on the shareholder's residential status and the documents submitted. Shareholders must submit all necessary documents on or before June 25, 2026, to the RTA via email (jyothylabsdivtax@in.mpms.mufg.com) or the designated online portal (https://web.in.mpms.mufg.com/formsreg/submission-of-Form-121-41.html#). Incomplete or late submissions will not be considered, and TDS will be deducted as per the Act's default provisions.

TDS Rates for Resident Shareholders

  • Default Rate (10%): Applies to any resident shareholder. PAN must be updated with depositories (demat) or the RTA (physical).
  • Nil Rate (0%): Applicable if the total dividend income for a resident individual shareholder during FY 2026-27 is estimated to be below the maximum amount not chargeable to tax. Requires submission of Form 121.
  • Higher Rate (20%): Applicable if the shareholder does not have a valid PAN, has an invalid PAN, or has not linked their PAN with Aadhaar (as mandated by Section 262 of the Income Tax Act).
  • NIL/Lower Tax for Specific Entities: Entities like Insurance Companies, Mutual Funds, Alternative Investment Funds (AIFs), and New Pension System Trust can submit specific self-declarations and documentary evidence (e.g., registration certificates) to claim nil or a lower withholding tax rate as per relevant sections of the Act (e.g., 393(4), 393(5)) or a lower/NIL withholding tax certificate obtained u/s 395(1).

TDS Rates for Non-Resident Shareholders

  • The default TDS rate for non-resident shareholders, Foreign Institutional Investors (FII/FPI), is 20% (plus applicable surcharge and cess).
  • They may opt for a lower rate under an applicable Double Taxation Avoidance Agreement (DTAA/Tax Treaty). To claim this, they must submit:
  • A copy of their PAN card (if allotted).
  • A self-attested copy of a valid Tax Residency Certificate (TRC) covering FY 2026-27.
  • Mandatorily file Form 41 online on the Income Tax e-filing portal.
  • A self-declaration on letterhead regarding the non-existence of a Permanent Establishment (PE) in India, beneficial ownership, and eligibility for treaty benefits.
  • Specific requirements apply for shareholders resident in Singapore concerning Article 24 (Limitation of Relief) of the India-Singapore DTAA.
  • The company is not obligated to apply treaty rates and will do so only upon receipt of complete and compliant documentation.

Additional Important Provisions

  • Shareholders holding shares under multiple accounts with a single PAN will be subject to the highest applicable TDS rate across all their holdings for the entire dividend income.
  • Post-dividend payment, shareholders can download the TDS certificate (Form 168) from their Income Tax e-filing account.
  • Rule 203 Declaration: Intermediaries/stock brokers holding shares on behalf of beneficial owners must provide a declaration in the prescribed format if the dividend income is assessable in the hands of the beneficial owner and not the deductee. Such declarations will not be accepted after two months from the dividend payout date.
  • If excess TDS is deducted, shareholders may claim a refund as provided under law, and no claim shall lie against the company for such deduction.

The communication includes links to download all necessary forms: Form 121, Self-Declaration (Resident), Declaration under Rule 203, and Self-Declaration (Non-Resident). The company has disclaimed that this communication is not tax advice and shareholders should consult tax professionals.