Dividend Recommendation and Key Dates

The Board of Directors of Mafatlal Industries Limited, at their meeting held on Tuesday, 5th May 2026, recommended payment of a final dividend of ₹1.25 per equity share (face value of ₹2 each) for FY 2025-26. This is subject to approval by members at the 112th Annual General Meeting (AGM) scheduled for Friday, 7th August 2026.

The record date for determining entitlement to this dividend is Friday, 31st July 2026.

Tax Regime and General TDS Principle

Pursuant to the Finance Act, 2020, dividend income declared, distributed, or paid on or after 1st April 2020 is taxable in the hands of the shareholders. The company is required to deduct TDS at prescribed rates from the dividend paid.

Detailed TDS Rates and Document Requirements

The communication provides exhaustive tables outlining TDS rates and necessary documentation for different categories of shareholders:

For Resident Shareholders:

  • Individual shareholders receiving an aggregate dividend not exceeding ₹10,000 from the company during TY 2026-27: TDS rate NIL. No documents required.
  • Shareholders with valid PAN (including individuals receiving dividend over ₹10,000): TDS rate 10%. They must update/verify PAN and residential status with their Depository Participant (demat) or the company's Share Transfer Agent, Kfin Technologies Limited (physical shares).
  • Resident individual shareholders submitting Form 12B: TDS rate NIL. Requires Form 12B (Annexure A) and a self-attested copy of PAN.
  • Shareholders without a valid PAN: TDS rate 20%. No documents required.
  • Shareholders submitting a certificate under Section 197 of the Income-tax Act, 1961: TDS at the rate mentioned in the certificate. Requires a self-attested copy of the certificate.
  • Entities covered under Section 393 of the Act (Government, RBI, certain corporations): TDS rate NIL. Requires documentary evidence and a self-declaration in Annexure B.
  • Mutual Funds under Schedule VII: TDS rate NIL. Requires self-attested PAN copy, self-declaration in Annexure B, and a copy of the registration certificate.
  • Alternative Investment Funds (AIF) established in India: Category I & II AIFs have a TDS rate of NIL. Category III AIFs have a TDS rate of 10%. Requires self-attested PAN copy, SEBI registration certificate, and a self-declaration in Annexure B.
  • Any other entity exempt from withholding tax under section 393(9): TDS rate NIL. Requires a self-declaration in Annexure B.
  • Any other entity entitled to exemption from TDS: TDS rate NIL. Requires valid self-attested documentary evidence (e.g., registration, notification, order).

For Non-Resident Shareholders:

  • Foreign Institutional Investors (FIIs)/Foreign Portfolio Investors (FPIs): TDS rate is 20% (plus surcharge and cess) or the beneficial Tax Treaty rate, whichever is lower. Requires updating PAN/legal status, a declaration in Annexure-C, and for treaty benefits: self-attested PAN copy (or Annexure-D if no PAN), a valid Tax Residency Certificate (TRC) for 2026/27, an electronically filed Form 41 for TY 2026-27, and a self-declaration per Annexure-E.
  • Other Non-resident shareholders (except from Notified Jurisdictional Areas): TDS rate is 20% (plus surcharge and cess) or the beneficial Tax Treaty rate, whichever is lower. Requires updating PAN/residential status. For treaty benefits: requires the same documents as FIIs/FPIs (PAN/Annexure-D, TRC, Form 41, Annexure-E).
  • Non-Resident Shareholders who are tax residents of a Notified Jurisdictional Area (as defined u/s 176 of the Act): TDS rate 30%. No documents required.
  • Submitting a certificate u/s 197 of the Income-tax Act, 1961 or u/s 395(1) of the Income-tax Act, 2025: TDS at the rate provided in the certificate. Requires a self-attested copy of the certificate, which must be obtained on the company's TAN (MUMM19025G), be valid for TY 2026-27, and cover dividend income.
  • Any other entity entitled to exemption from TDS: TDS rate NIL. Requires a self-declaration and valid self-attested documentary evidence.
  • Specific note for shareholders tax resident in Singapore: Must furnish a letter from the competent authority or evidence demonstrating non-applicability of Article 24 (Limitation of Relief) under the India-Singapore DTAA.

Important Notes and Deadlines

  • All required forms/declarations are available on the RTA's website: https://ris.kfintech.com/clientservices/investors/taxformsupload.aspx.
  • Shareholders must upload all duly filled and signed documents by 5 PM (IST) on Friday, 31st July 2026, via the RTA website.
  • The company will not entertain any communication regarding tax determination/deduction after Saturday, 25th July 2026.
  • Documents must be self-attested. In case of ambiguous or incomplete information, tax will be deducted at the maximum applicable rate.
  • For joint shareholders, the first-named shareholder must furnish the requisite documents.
  • If TDS is deducted at a higher rate, shareholders can claim a refund by filing their income tax return; no claim shall lie against the company.

General Information for Shareholders

Shareholders are requested to update the following details with their Depository Participant by Saturday, 25th July 2026, to ensure correct TDS application: Permanent Account Number (PAN), Residential status for TY 2026-27, Category of the Member, Valid e-mail address, Address, and Bank account details linked to the demat account.

The company's Share Transfer Agent is KFin Technologies Limited, Selenium Tower B, Plot 31 & 32, Financial District, Nanakramguda, Hyderabad - 500032 (Toll free: 1800 309 4001).

Disclaimer

The document includes a disclaimer stating that the information provided is for general purposes only and does not constitute legal or tax advice. Investors are advised to consult their own tax consultants for specific implications.