Kuantum Papers Limited has issued a comprehensive communication to shareholders regarding tax deduction at source (TDS) procedures for the proposed dividend for financial year 2025-26.

The Board of Directors, at its meeting held on 26th May 2026, recommended a final dividend of ₹2.5 per equity share (250%) on shares of face value ₹1 each for FY 2025-26. This recommendation is subject to approval by shareholders at the forthcoming Annual General Meeting scheduled for 27th August 2026.

In terms of Regulation 42 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Record Date has been fixed as 20th August 2026 for determining shareholder eligibility for dividend payment. The dividend, if declared, will be paid within 30 days from the AGM date through electronic modes to shareholders who have updated their bank account details.

Tax Deduction at Source Provisions

The communication elaborates detailed TDS provisions under the Income Tax Act, 2025 for both resident and non-resident shareholders:

For Resident Shareholders:

  • 10% TDS where valid PAN is registered
  • 20% TDS where PAN is not provided/available or PAN-Aadhar linking not done
  • No TDS for resident individuals if total dividend during FY 2026-27 does not exceed ₹10,000
  • No TDS if shareholders provide Form 121 along with PAN card copy (for individuals) or appropriate exemption documents for non-individual entities

Specific exemptions for resident non-individuals include:

  • Insurance Companies (with declaration and IRDA registration)
  • Mutual Funds (with SEBI registration)
  • Alternative Investment Funds (Category I or II with SEBI registration)
  • NPS Trust
  • Other exempted entities under Section 393 of IT Act

For Non-Resident Shareholders:

  • Default withholding tax rate of 20% plus applicable surcharge and cess
  • Option to avail Double Tax Avoidance Treaty benefits if more beneficial
  • Requirements include PAN copy, Tax Residency Certificate, Form 41, No PE declaration, Beneficial ownership declaration
  • For Singapore tax residents, proof of satisfying Article 24 - Limitation of Relief requirements

Documentation Submission Requirements

Shareholders must submit required documents by 17th August 2026, 11:00 AM through:

  • Company's RTA, Mas Services Limited, via their portal: https://masserv.com/investortax/investor25-26.asp
  • Demat account holders can submit through their DP with NSDL or CDSL
  • Non-resident institutional investors may submit through their custodians registered on NSDL platform

Payment Structure

Resident Shareholders:

  • Nil TDS if total dividend ≤ ₹10,000
  • Nil TDS with valid Form 121 and PAN-Aadhar linking
  • 10% TDS with PAN available
  • 20% plus surcharge/cess without PAN

Non-Resident Shareholders:

  • Beneficial treaty rates based on submitted documents
  • 20% plus surcharge/cess if documents not submitted

Important Notes

  • Shareholders with multiple accounts under different status categories will have higher applicable tax rate applied to entire holding
  • TDS rates enhanced by applicable surcharge and cess except where tax treaty benefits apply
  • No communications regarding tax determination will be entertained after the 17th August 2026 deadline
  • Shareholders are responsible for any income tax demands arising from misrepresentation or omission of information
  • Dividend will be paid only in electronic form as per SEBI LODR Regulations