La Opala RG Limited has issued a communication regarding the deduction of Tax at Source (TDS) on dividend for FY 2025-26.

The Board of Directors at its meeting held on May 30, 2026, recommended payment of a dividend of ₹5.00 (250%) per equity share of face value ₹2 each for the financial year ended March 31, 2026. This dividend will be paid after declaration at the ensuing Annual General Meeting (AGM).

In accordance with the Income Tax Act, 2025 as amended by the Finance Act, 2026 (effective April 1, 2026), dividend declared and paid by the Company is taxable in the hands of shareholders, requiring TDS deduction at prescribed rates.

Key Requirements and Deadlines

  • Shareholders must submit required documents by Thursday, August 20, 2026 (23:59 hours)
  • All links for document submission will be disabled after this deadline
  • Documents received by post, courier, or hand delivery are also acceptable
  • No communications on tax determination/deduction will be considered after August 20, 2026

SEBI Mandate

SEBI Circular No. SEBI/HO/MIRSD/MIRSD_RTAMB/P/CIR/2021/655 dated November 3, 2021 (with subsequent amendments) mandates that dividend payments to physical shareholders shall be made only through electronic mode effective April 1, 2024. This requires furnishing PAN, choice of nomination, contact details including mobile number, bank account details, and specimen signature.

TDS Rates and Documentation Requirements

For Resident Members:
  • No TDS: If dividend amount doesn't exceed ₹10,000 during FY 2026-27
  • 20% TDS: For invalid PAN or non-linking of PAN and Aadhaar
  • NIL TDS: For shareholders submitting Form 121 fulfilling certain conditions
  • Certificate Rate: For valid lower/NIL withholding tax certificate under Section 395
  • NIL TDS: For specific entities (Mutual Funds, Insurance Companies, AIFs, NPS Trust) with appropriate declarations
For Non-Resident Members:
  • 20% TDS: Plus applicable surcharge and cess (default rate)
  • Tax Treaty Rate: Whichever is less between 20% and DTAA rate
  • 30% TDS: For shareholders from Notified Jurisdictional Areas
  • Certificate Rate: For valid lower/NIL withholding tax certificate

Important Provisions

  • Recording of valid PAN is mandatory for all shareholders
  • PAN considered invalid if not as per Income-Tax Portal database
  • Aadhaar must be linked with PAN as per prescribed timelines
  • For joint shareholders, the first-named shareholder must furnish documents
  • Documents must be submitted once per financial year (April 2026-March 2027)
  • Company reserves right to reject documents in case of discrepancies
  • Company will deduct TDS based on records from depositories/RTA
  • Shareholders responsible for any tax demands arising from misrepresentation